Construction projects involve many moving partsβmaterials, labor, subcontractors. Tracking costs accurately is essential for profitability.
Construction Cost Categories
- Materials β Cement, steel, timber, fixtures
- Labor β Fundis, helpers, site managers
- Equipment β Rentals, fuel, maintenance
- Subcontractors β Electrical, plumbing, painting
- Overhead β Transport, site security, permits
Project-Based Tracking
Every cost should be linked to a specific project:
- Create a project for each construction job
- Record all purchases against the project
- Track labor hours by project
- Compare actual vs. budget regularly
Material Management
- Record every purchase with receipt
- Track materials issued to site
- Monitor wastage and theft
- Compare usage vs. estimates
Cash Flow in Construction
Construction often involves large upfront costs before payment:
- Get deposits before starting
- Bill at milestones (foundation, roof, finishing)
- Track receivables closely
- Negotiate supplier credit terms
Key Reports
- Cost vs. budget by project
- Material costs breakdown
- Profit margin by project
- Cash flow projection
Tawala for Construction
- β Project-based cost tracking
- β Material purchase recording
- β Invoice customers by milestone
- β TRA VFD compliance
- β Profit reports by project