Common Roadblocks in Job Costing
While job costing is a necessity in construction and field service industries, it’s not always a pleasant task. It’s often either overlooked, forgotten, or done incorrectly.
Aversion to Technology
The number two reason on Forbes’ top 10 reasons people leave their jobs is because they don’t have the right tools or equipment to get the job done.
Today’s construction companies need to embrace technology. Research from McKinsey & Company found this to be one of seven important areas that are reshaping the industry and boosting productivity by as much as 60 percent.
Having the right tools to collect job costing data will make the job easier and far more accurate and technology is one of those tools that you need to get it done right.
There are many options available - from Computer-Aided Design (CAD) and Building Information Monitoring (BIM) to 3D printing and drones - technology can feel overwhelming. In fact, as technology advances, older generations are more and more distanced from embracing it. Technophobia is a term used to describe an irrational fear of technology which leads to people avoiding it altogether.
But adopting technology for your job costing does not have to be complicated or difficult. Start small and learn from others. Talk to peers or experts who are familiar with different technologies to determine which would be the best fit for you.
Collecting Receipts from Workers
When you have workers in the field, it is challenging to have them collect and turn in receipts for materials or other expenses. From damaged or illegible receipts to lost and forgotten receipts, many administrators are unable to accurately record how much is truly spent on a job.
This is another issue that can be remedied with the use of technology. Notes, photos, attachments, or messages shared through a digital platform removes the need for collecting and sharing paperwork that, on a jobsite, might otherwise get lost.
Being able to apply specific amounts to specific jobs, makes job costing more accurate and less painful. A system that provides your workers with the option to snap a photo of a receipt and attach it to a specific job will make their jobs easier, too.
The Time it Takes
Manually entering job costing information takes a lot of time. This can become overwhelming and when we’re overloaded at work, the effects can range from forgetfulness to cognitive fatigue, according to Harvard Business Review.
It’s frustrating to be stuck with stacks of paperwork you need to enter manually which sometimes leads to procrastinating on the task. And even when you decide to undertake the task of manual entry, the boredom and frustration can lead to errors.