Construction Accountant's Insights: Seeking Help for the Industry

As a seasoned construction accountant, I have the unique privilege of witnessing firsthand the intricate processes that go into top-performing construction projects. Over the years, I've had the opportunity to work with a major heavy construction contractor in Oklahoma, where we developed and implemented a robust cost accounting system that served as the backbone of our financial success. This experience has given me valuable insights into the challenges faced by construction professionals today and the solutions that could help make their work more efficient and profitable.

Promoting Efficient Cost Management through Discrete Unit Accounting

One of the key components of our success was our approach to cost accounting. We broke down every construction project into discrete units of work, ensuring that each phase of the project was measured and tracked meticulously. This detailed accounting allowed us to accurately assess the cost of all major items of work, from materials to labor, on a daily basis. Holding the field staff accountable for any deviations from the planned costs not only ensured that costs were kept under control but also fostered a culture of responsibility and efficiency across the entire project team.

The daily cost tracking was instrumental in providing real-time data, which could be used not only for corrective actions but also for making informed decisions about future projects. By using the unit costs from completed projects, we were able to prepare highly competitive bids for new projects, further solidifying our position in the market. The result was a highly profitable business that not only met but often exceeded client expectations.

What Construction Professionals Need Help With

Reflecting on my years in the construction industry, I realize that what construction professionals need most is help in ensuring they have effective and efficient systems in place, similar to the one we developed in Oklahoma. Many find themselves struggling with cost overruns, inefficient workflow, and miscommunication between different project teams. To address these issues, I propose the following areas that require immediate attention:

1. Robust Cost Accounting Systems

Implementing a system where every project is broken down into discrete units of work and where the cost of all major items of work is measured and tracked daily can provide valuable insights into cost management. This system can help identify areas where costs are spiraling out of control and allow for timely corrective actions.

2. Accountability and Responsibility

Holding field staff accountable for the costs they incur on a daily basis can foster a sense of responsibility and drive efficiency. Regular reporting and feedback mechanisms can ensure that all team members are aware of the financial impact of their actions and make necessary adjustments to keep projects on track.

3. Accurate Data for Future Bidding

The use of accurate and detailed cost data from completed projects enables construction professionals to prepare more competitive and realistic bids for new projects. This not only helps in securing contracts but also positions the company as a reliable and professional partner in the industry.

Get Involved: Answer a Few Quick Questions

To help construction professionals find the tools and resources they need to improve their cost management and overall efficiency, I encourage you to take a few moments to answer the following questions. Your insights and feedback will be invaluable in shaping the future of the construction industry and ensuring that it thrives in a competitive and complex business environment.

Answer a Few Quick Questions

Together, we can make a positive impact on the construction industry, turning challenges into opportunities and delivering exceptional results for all stakeholders.