Construction
Construction Analytics.
Supporting efficiency, quality and profitability.
We have identified several industry specific metrics (see below) that may be of interest to you. However, there are basic business metrics that should always be analysed, and regularly, in order to point you in the direction of what needs investigation. These are:
Revenue. Total income generated from sales before any expenses. It shows the overall scale of the business and is a top-line indicator of growth and demand.
Net Profit Margin. Net Profit expressed as a percentage. It reveals how much actual profit the business makes after all expenses … a key measure of efficiency and sustainability.
Cash Flow. Net amount of cash moving into and out of the business. Indicates liquidity and the ability to meet short term obligations, invest, and grow.
Fixed Costs vs Revenue. Costs associated with running the business. Identifies areas to reduce costs and improve profitability.
Accounts Receivable/Payable. Identifies what may be affecting cashflow.
Industry Specific Metrics: Construction
Project Schedule Adherence
Why? Delays increase costs and reduce profitability. Client satisfaction also impacted.
Cash Flow Forecast Accuracy
Why? Ensures financial obligations can be met and funds ongoing projects.
Budget Variance
Why? Keeps financial performance in check and identifies overspending.
Labor Productivity
Why? High productivity ensures faster delivery and reduced labor costs.
Equipment Utilisation
Why? Ensures efficient asset usage and highlights rental possibilities.
Change Order Frequency
Why? Frequent changes are inefficient and disrupt workflow, and can inflate costs and timelines.
Safety Incident Rates
Why? Indicates safety culture and compliance, impacting insurance and morale.
Quality Defects Rates
Why? Low quality increases rework costs and delays.
Subcontractor Performance
Why? Identify critical path obstructions and delays.
Material Waste / Utilisation
Why? Waste drives costs up unnecessarily, and reduces sustainability.