What the $127K Is Made Of.
The figure on those buttons is a total annual cost, not a price and not a promise. For a contracting business of around ten people turning over about a million dollars a year, it is what running the operation on disconnected tools costs over twelve months. It is four things, not one.
- 01
Overhead inefficiencies
Hours your office and your crews spend doing work the software should be doing for them. Entering the same job twice, chasing a photo somebody took last Tuesday, rebuilding a report that already exists somewhere.
- 02
Labour overruns on each project
Hours that land above what the job was scoped for. On most projects they surface at the end of the month, which is well past the point where anything could have been done about them.
- 03
Missed billing opportunities
Work performed and never invoiced. A change order agreed in a driveway, a second trip nobody logged, equipment that sat on a job three days longer than the paperwork says.
- 04
Uncollected revenue
Invoices that go out and do not come back. Approved amounts a carrier short-pays, and the follow-up that never happens because nobody was watching that particular line.
How this squares with the $54,250 below.
The calculator below covers items 01 and 03: the time your team gets back, and the profit that comes from billing more accurately. Move the sliders and every figure in it is arithmetic you can check.
The wider figure counts all four at once, for a business of the same size. We publish the arithmetic for the smaller number because it is the part we can show you line by line.
If you have run a contracting business for any length of time, none of these four is news. Which one is largest in your shop is the part worth knowing.
