Our Construction Solution Scorecard Offer (this offer is being refined, contact us). 

Intro – About the Construction Scorecard 

I created a different type of Scorecard that will allow you to characterize and dimension new business proposals and projects along eight (8) different KPI’s that can be modified and scored by YOUR preferences.

Let us give you the insight to understand how well each of your jobs/projects stacks up against each other and how well they support your (within Firm) requirements.

Here’s what we do – We score your preferences along (4) main attributes:

1. Profitability
2. Profitability by Time Required
3. Cash Flow Timing
4. Client/Customer Relationship

Within Profitability by Time Required to complete each job, labor expenses are calculated and compared against a commonly used calculation of Full-Time Equivalents (FTE’s).

Next, We add your KPI preferences (8, in total) and compute a raw score that compares each Job against other Jobs.

We can modify each KPI based on your business model and preference, meaning that we can score your preferred KPI’s based on how much you want to weigh each preference. This gives you an objective measure (across all Jobs) that considers your preferences, and is unique to your operation!

Here are some details –

Profitability:

• Gross Profit is calculated – the difference between Net Sales and Direct Expenses.
• Gross Profit as a percentage of Net Sales is calculated and compared against your internal acceptance (hurdle) rate, if one exists and conditionally formatted for green (accept) or red (reject).
• Return on Invested Capital (Equipment) is calculated to consider how well new capital is being utilized. Depreciation should not be considered.

Profitability by Time Required:

• Time is a finite resource like any other resource. So, Gross Profitability per total worker-hours is calculated to give you an indication as to how much each project is returning (per hour).
• In addition, total (expected) labor hours are calculated for each job as well as the number of Full-Time Equivalents (FTE’s), based on the number of hours your Firm considers to be full-time.
• Labor expenses are calculated using your (in Firm) labor rates (per hour) for each employee that is based on employee gross pay.

Cash Flow Timing:

• Time to cash is an extremely important consideration. Cash-in – payment terms (immediate, Net15, Net30, etc…) with your Client/Customer are compared against cash-out – payment terms (if any) with your Vendors on Account.
• In addition, we look at whether you can bill your Clients/Customers for progress based on the amount of labor expenses (that have been expensed) to the total amount. Clients/Customers that do not allow for progress billing tie up cash, especially for materials if they cannot be billed until project completion.

Client/Customer Relationship:

• Relationships are key. Often, the difference between a profitable Client/Customer, that values what you do, versus, one that does not, is based on the strength of the relationship.
• Relationships with Clients/Customers greater than 1 year should be scored higher since your ability to influence job terms or conditions is stronger with those Clients/Customers that know and like you.
• Scope Creep. Scope Creep is defined as those additions or modifications that are requested that were not part of the original agreement. Can you bill for every added request, change or modification? If you’re on site, some Clients/Customers will take advantage of this. But, even for very small changes, if you add these up, they can become significant. You should view these requests as real opportunity costs if you are unable to move on to the next job (because of resource constraints).
• Degree of Client/Customer Difficulty. The strength of the relationship and the ability to bill for scope creep will often be reflected in this measure, but there are situations where Clients/Customers that would allow for billing (for scope changes) may be so difficult, impacting your employees, or vendors, that these Clients/Customers may warrant reconsideration.

Each KPI is scored based on your preference and added together for a total raw score.

Raw scores can be normalized to a 0-100 scale.

Although this is a planning Scorecard, the same principals should be used to measure each Job (after completion) to gauge actual results versus those that were expected during the proposal phase – Job post-mortem.

Our Offer:

We want to help you grow. But growth comes from a lot of different factors – and these 2 are extremely important – positioning your Firm (based on skill, or other inherent advantages) to the type of work/jobs that Clients/Customers have a demand for and value.

You need to characterize and dimension your job portfolio to understand if the jobs you accept, support your overall strategy and mission.

You can’t be all things to all people – and, our Construction Solutions Scorecard will give you the insight to help you understand the portfolio of your business, better.

We’ll score your top 5 Jobs/Projects for an introductory price of $.

What you’ll receive – A report detailing your Jobs with a score summarizing  each KPI and the preference of each KPI from 1 – Most Preferred to 8 – Least Preferred.

You have the option of comparing each job with a raw score or normalized on a 0-100 scale.

As this gains interest and traction, we have plans toward integrating this as part of a broader Dashboard for Construction Firms, or possibly offering this as a standalone product.

For more details, contact us here: