What do you call a small construction company w/ profit margins under 10%? A company that is slowly going under.

Challenge

The client conducted all their material takeoffs using a blank paper and trusty pen, going from job site to job site estimating work and then returning to the office to write up the estimate. The client was unsure, beyond material and labor, if they were including all their indirect costs and why the company didn’t seem to be growing more profitably.

Solution

We paired w/ the owner to build out a master takeoff for their unique, specialty trade including all direct, indirect, insurance/ bond, overhead and profit rates. The project takeoff provided the owner a clear visualization of one of the owners projects and forecast losses if the project wasn’t completed on schedule. Through the consulting engagement we built out the master takeoff to scale the drywall/ metal stud framing company’s estimating department.

Results

At the conclusion of the consulting engagement, the client had a master takeoff that incorporated all direct, indirect, insurance/ bond, overhead and profit rates to ensure sustained profitability. This master takeoff served as the originating clone for future project takeoffs on project jobs and provided assurance to the client what their true costs were to clients.

For more information, contact: David Molina.

At Molinas, we’re known for building internal tools for maximum productivity, efficiency and optimal use of time. Schedule consultation today.