Here's a simple 4-step framework for construction cost control (for predominently sub-contract projects) Step 1 - Create the budget Organise your money into "cost codes" (money buckets) based on how you are spending it. (Not how you are getting paid). Each bucket shoulld be easily trackable. Use direct costs (subcontractors and materials), indirect costs (project management and overheads) and contingency (a reserve fund for risks and unknowns) Step 2 - Lock in Contracts (Commitments) Hire contractors and sign agreements with clearly defined scopes, terms, and conditions to prevent future price changes Hire contractors and sign agreements with clearly defined scopes, terms, and conditions to prevent future price changes Step 3 - Forecast the Final Cost Things will inevitably change on site, so closely track variations (changes in scope that cost extra money). Constantly calculate your Forecast Final Cost. Do this by adding together your signed contracts, your expected variations, and your contingency funds Comparing this forecast to your original budget tells you immediately if the project is heading for a profit or a loss, allowing you to catch problems early. Step 4 - Manage Cash-Flow "Cash is king." Track exactly when you need to pay subcontractor bills (progress claims) and when you are getting paid by the client Understanding the timing of money going in and out ensures you don't run out of cash and have to take on expensive bank loans Keen to learn more, check out this video (liking and subscribing helps the algoirthm!)

I'm keen to hear who everybody is, and what their goals are I assume you already know who I am. But if you don't I'm Tim. I worked for 8 years for big contractors on road, rail, renewable energy projects. I've always worked for head-contractors. I recently worked for some smaller contractors as a consultant when I left my job doing estimating and contract management. It was good, but I found it hard to see a path to scale (other than just starting a contracting business myself) So I instead decided to build software, and found that that's 100x harder than I thought and a very easy way to lose money

Hi everyone, I am a project manager and building construction methodologist. I own and run a construction company, and originally from Zambia 🇿🇲, Central Africa. Great to be here. Cheers 🥂