Updated: June 1st, 2009 11:55 AM EDT
Are Indirect Labor Costs Killing Your Cost Competitiveness?
Ron Roberts
The Contractor's Business Coach
Imagine how much more money you'd make if your field crews got 20% more work done for the same cost?
Kind of hits you right in the stomach, doesn't it?
Here's what you need to do.
- Update your cost code list to include one or more tasks that you consider to be indirect. If you choose to only offer one indirect code, call it "miscellaneous".
- Update your timesheets.
- Teach your foremen what activities should be charged to the indirect cost codes.
- Run weekly reports showing direct hours, indirect hours, and billable hours (hours charged to job that aren't over-budget).
- Take necessary action to keep the indirect hours in budget.
Ron Roberts teams with Guy Gruenberg as The Contractor's Business Coach. They show contractors how to grow their businesses profitably. To sign up for their FREE Newsletter or join their Private Club, visit www.FilthyRichContractor.com.
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