Slippage

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Having a complete picture of budgets projects

When John Gemmi of Gemmi Construction, in Doylestown, Pa., started sharing each... More

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Slippage, If Consistent, Will Kill Your Year

Any amount of slippage, if consistent, will quietly and effectively kill your year... More

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Mental Shift

Soon after transitioning from cost-plus pricing to a fixed-price system, Art Stinson's Trace Ventures ran into trouble with slippage. Stinson says the Nashville, Tenn., company was mired in a cost-plus mentality that allowed for imprecise estimates, and unforeseen costs (if they weren't due to a Trace mistake) were being passed on to the homeowner. More

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Slippage in the permit process

All remodelers are robbery victims. The thief is slippage, which is the amount your profit falls short of plan. The root causes of slippage are often simple ó but that doesn't mean they're easy to find. And while some sources, like inconsistent labor productivity or poor change order management, can take big bites out of profits, smaller losses tied to less obvious sources can add up. More

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Slippage and Risk Ratio recalculations

One factor affecting the numbers reported in the May issue was incomplete results. Since press time for the May issue, we've received additional data that change the slippage picture somewhat.The good news is that the median for all companies is -2.9%, meaning about half the companies performed better than Hanbury's "witch-hunt" standard. More

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Solving cost slippage problems

Slippage occurs when something on the job causes unrecoverable costs to extend beyond the limits of the estimate. King has since refined and implemented several processes to help her company reduce slippage, most notably instituting a "post-mortem" review of costs at the completion of every job. More

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Big50 Averages: statistical highlights

Although this year's class of Big50 remodelers displays great variety in size, business structure, target market, project focus, and geographic location, the averages tell a fairly consistent story. By this measure, small- and large-volume companies in this year's Big50 class performed about the same, with most averaging net profit of between 8% and 9%. More

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Reader Panel: Profit Slippage

Typical profit slippage -- the difference between estimated and produced gross profit--is 5% or more according to our survey. More

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Accurate Job Costing

If you only have one part of bookkeeping done right, it better be your progress job costs," says Mike Weiss of Weiss & Co. in Carmel, Ind. Because variances in labor costs are a major source of slippage, tracking payroll is key to accurate job costs. More

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Slip Sliding Away

Slippage measures the difference between estimated gross profit and produced gross... More

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