Survey: 1 in 3 Construction Companies Earning Less Than Expected

A survey of 666 construction business owners and financial experts showed 29% said they usually come away with less profit than estimated

Intuit QuickBooks
A survey of 666 construction business owners and financial experts unveiled some interesting data regarding construction estimating and profits.
A survey of 666 construction business owners and financial experts unveiled some interesting data regarding construction estimating and profits.
Intuit QuickBooks

The challenges construction companies face when tracking project costs and profitability have been cast in new light by an in-depth job costing survey jointly commissioned by QuickBooks and TSheets.

Estimates are a high-risk, challenging task

One in four respondents said just two or three inaccurate estimates could tank their business. Meanwhile, 20% agreed that estimating projects is the hardest financial process to get right.

And yet, over half (54%) track project costs without software, which could play a role in a business’ overall confidence in their estimates.

When it comes to who prepares project estimates, business owners were more likely to take on the responsibility than financial experts.

Perhaps as a result, not all respondents reported a high level of confidence in estimating their project costs. Some 60% said they felt very confident, while the remainder were at best only somewhat confident. With those numbers, profitability is hardly a guarantee. Almost a third (29%) say they usually come away with less profit than estimated.

(more about the survey and results...)



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