Additional items or “extras” requested by customers (or suppliers) that are outside the scope of the original contract are not uncommon. These extras can lead to significant losses in profitability to a company when annualised across dozens, or hundreds of jobs.
The primary reason for this is that you, as the construction company, can often be left to foot the bill for any small additional purchases required to complete a job.
These small, seemingly insignificant costs can create a very big hole in profits when added together. Keeping a constant vigil on these “extras” is time consuming, but in the past was necessary to maintain and track these extras to preserve cash flow and eliminate wastage.
The “Extras” component of our Evolve Construction Software Management solution delivers complete transparency over this area of job-management.
It eliminates the possibility of any losses being hidden in orders outside the original scope of work without any additional for a human to have to manually double-check inventory.
This transparency and line of site not only provides supervisors with additional information at their fingertips but allows them to control the profitability of the overall job with much greater certainty and efficiency.
A well-structured extra ordering management process can prevent contractors and suppliers from hiding costs in their work, which has been an issue throughout the industry and in such a fast-paced industry like construction, it's essential to have a streamlined and efficient way to manage extras.
This single piece of software has assisted construction companies in identifying and rectifying behaviours that were costing them hundreds of thousands – even millions – of dollars in losses each year from extras ordering that was either incorrect or bordering on theft.
Its benefits are summarised below.
Take back control of your construction companies' profits. Give Bill a call today on 0438 508 070. He’ll walk you through how you could potentially save a significant amount of money, resources and administrative headaches through this one piece of construction software.