We currently compare actual gross profit to estimated gross profit as a financial measurement when reviewing job performance.  We also look at cost projections and revenue remaining.  Gross profit is a broad measurement of the job and appropriate for high level analysis. 

What other financial measurements are being used to analyze jobs at a more granular level and to determine how a job is performing?

Brooks

We look at three measurements % of costs, % of billings and % of time.  If you're familar with S curve graphs, a job that is going well, its costs and billings should exceed the % of time incurred somewhere around the 25% to 30% complete level depending on the type of contractor you are.  We would expect the costs and billings to be ahead of the time schedule from that point forward.  For example, we would consider a job that has its costs and billings running ahead of its schedule as a job that is performing well.  i.e a job that is 50% through its time schedule and its costs and billings at 55% would be a job performing well.

Hi Brooks-Seeing as how you are a Heavy Highway contractor, measuring in various units is a great way to measure productivity.  Higher end construction accounting software job costing can greatly help here.  It can compare your unit estimated cost for each category (Material, equipment, labor, etc.) to the incurred cost within each unit type.  Granted, profitibility is the best indicator of health.  However if your productivity on a per cost code or per unit basis beats your estimated productivity, higher profits will follow.  Good software and related practices can also help identify unwanted productivty trends earlier in the job.  If identified early enough, correction action can be taken to preserve remaining margin.  Feel free to send an email if needed.

Billy

bstockton@advancedbuildingconcepts.com

Depends on if you are a specialty contractor or a general contractor.  As a specialty contractor you are probably very in tune to labor costs as a revenue driver of your projects.  You might take a look at budgeted average wage per category to see if your estimates are in line with the PM actual usage of staff.  An example would be a field engineer may be budgeted at $30 an hour for 1500 hours or $45k.  Say the actuals were $45k, but you only used 1250 hours.  Your average hourly rate used is now $36.  This can be good information when working with a client that uses standardized hour estimates in their selection process.