Keep your margins on track alongside Sage.
With economic uncertainty driving up tender prices throughout 2018, it’s more important than ever for subcontractors to closely monitor margins on every job, so that they can easily track costs and identify when a project is likely to go over budget to avoid unexpected expenditure. Here we look at the role software designed for the construction sector can be used alongside Sage to help you protect margins throughout the supply chain squeeze.
Construction and consultancy company Mace has revised forecasts for tender price rises in the next year to 1.5% nationally and just 1% in London, as the supply chain struggles to absorb increasing input costs. Mace identified rising material costs and skills shortages as key factors in driving prices up and, as the market can no longer absorb rising costs as it had before, subcontractors are now forced to increase their prices.
“The effect of [current economic] uncertainties on the supply chain’s appetite to secure work are offset by the impact of continued increases in input prices,” explained Mace Cost Consultancy MD Steven Mason. “[We] will start to see a small upward shift in tender prices in 2018 as the supply chain is no longer able to continue to absorb the spiralling impact of increasing resource costs.”
The uncertainties noted by Mason are hugely concerning for subcontractors, but with the right monitoring and tracking it can be possible to maintain profits against all the odds. Construction-specific software such as Construct for Sage from Eque2 is a key tool for protecting margins against sudden economic downturns, rising prices and a floundering supply chain.
- Monitoring project spend in real-time
The right software allows you to monitor every stage of a project in real-time, with up to-the-minute work in progress reports for ongoing work ensuring everyone from site to office is on track and on budget. The ability to identify specific projects which may go over budget – and receive automated alerts when they edge towards overspending – allows for corrective action to be taken before the overspend occurs.
- Using what’s gone before to plan ahead
Construction accounting software also allows for better planning, as historical data from previous projects can be used to make better-informed decisions and more accurate forecasting.
- Protecting profits by staying on top of spend
To secure profits, you should always be on top of spend, budget and project progress; in times of economic uncertainty, this knowledge becomes essential. When a supply chain squeeze hits, streamlined, efficient processes can help you stay afloat by saving time and money across every area of your business, where messy spreadsheets and silos of data slow you down and shrink your margins.
Eque2 provides a range of flexible construction accounting software solutions which seamlessly integrate with Sage, helping small to medium sized businesses effectively manage projects. Removing messy, fragmented spreadsheets, uniting departments and streamlining processes to ensure that even in times of economic uncertainty, your margins are safe.