Failing to track your project budget is a huge risk
Construction project budget tracking software helps discover problems and avoid project cost overrun on-site. The value of project budget tracking solution can be seen in statistics, according to a survey from PMI: “For the first time in the last five years of this research, we see that more projects are meeting original goals and being completed within budget.” Companies who do not value project budget management have more project failures. In fact, according to Harvard Business review, 27% of projects go over their intended cost budget
Budget and job cost tracking will keep your project under control- and your stakeholders happy
To realize the value of construction budget tracking, let’s check some findings about efficient project management, how it improves business performance and how successful project managers are prioritizing it. Managing budget and tracking your job cost is an essential part of any project. Staying on top of project expenses is also one of the most complex tasks in the industry, as tracking costs involves estimated budgets, analyzing and measuring results, and updating ongoing project processes and forecasts. The process starts from the very beginning and remains in place until the project is accomplished and delivered.
Monitoring and tracking costs
To able to track something, it must first be recorded and documented. By controlling a construction budget on a regular basis, you are able to make necessary customization to keep your project on track. It is important for the project manager to able to identify when costs are derailing from the budget and to handle those changes. Eventually, this allows for the project to be run smoothly.
Calculating and analyzing tasks
At the end of every reporting period, it is crucial to revise your tasks. See how much money the project units have taken from the budget compared with actual costs. If this has been carried out properly, the numbers should be close to each other. A comprehensive construction budget tracking tool will give you a transparent and accurate overview about your different project task results.
There are many uncertainties in the construction industry, and as we all know well, projects seldom go according to plan in every detail. Any changes which have been made should be updated in your forecast report. Actual costs can be lower or higher than estimated, and forecasts can sometimes be falsely calculated from the beginning of the project. If a work unit of the project has changed or there has been a change in the price difference of a job, the costs should be updated and documented.
The project manager is ultimately responsible for the project’s success. Good collaboration with company units and stakeholders about any unexpected changes in the early stages will leave more space and room for maneuvering, and tracking your construction budgets and job costs properly will result in less pressure on your shoulders.
Budget and job cost tracking as the solution for project managers
While construction project management cannot predict all obstacles that may arise, using an efficient project budget tracking solution can improve processes and allow jobs to go as smoothly as possible. Companies and project managers who value good project budget tracking and job cost tracking software practices have a huge advantage over competitors and enjoying the many benefits. Make sure you are keeping up!