Financial Control for Construction
When you understand your numbers and you use them, you increase your control.
Here is a breakdown of the session as I see it now – please give feedback and please tell me whether I should expect interaction or am I just talking blindly without interruption.
- Profit & Loss report with Benchmarks
- I can show three P&L’s in parallel of businesses in construction (I have an HVAC installation, residential construction and an office fit-out example)
- discuss what is behind the numbers – what goes into direct and indirect costs and why
- and benchmarks
- Priorities when improving profitability – pricing strategy
- here I would explain the levels of profit for control: contribution, gross margin, EBITDA, and Net profit before tax – I will use one P&L from above to make it easy to understand
- how to set pricing using these different levels of profit – use a real-life example
- Cashflow template
- here I would just show a template and how it works to forecast and control cash
- and make a clear point that it is different from P&L and not to ever confuse the two.