You can't see which crew makes money
Two crews run the same scope under the same conditions. One finishes ahead of the other, and your reports can't tell you which one it was.
Labor is the largest controllable cost in most trades, and it's the least measured. Without cost coded time at the crew level, productivity becomes an opinion, and the loudest voice in the meeting owns that opinion. You end up rewarding the crew that tells the best story about the week. The crew that installed more per hour never gets noticed, because nothing in the reporting counts units against hours.
Three moves, in order
Step 01: Job cost structure
Seven cost categories and three levels of granularity, built so the estimate and the ledger use the same words.
Other problems step 01 solves
Other things that go wrong
What owners ask
Track crew productivity construction?
Two crews run the same scope under the same conditions. One finishes ahead of the other, and your reports can't tell you which one it was. Labor is the largest controllable cost in most trades, and it's the least measured. Without cost coded time at the crew level, productivity becomes an opinion, and the loudest voice in the meeting owns that opinion. You end up rewarding the crew that tells the best story about the week. The crew that installed more per hour never gets noticed, because nothing in the reporting counts units against hours.
Which part of the system fixes this?
The step is number 01, job cost structure. Seven cost categories and three levels of granularity, built so the estimate and the ledger use the same words. It's drawn from chapter 1 of CONTROL: The Construction Financial Operating System.
Is this normal for my trade?
Across the 48 trades in the benchmark reference, net profit at $1M–$5M averages 7% before taxes. If you're well under that and this page describes your month, the two are usually the same story. The published average tells you where the pack sits, and your own job costing tells you where you sit, which is the number that pays payroll.
Where do I start?
Cost code labor to the activity, not just the job.
Is this where an installation usually starts?
It usually is. Step 01 has nothing ahead of it in the chain, and it feeds step 03 and step 04. That's why most installations begin here, and why fixing this one unblocks work you haven't started yet.
