Running a construction company is no small task, you are juggling bids, projects, crews, equipment, and cash flow all at once. With so many moving parts, it is easy to lose sight of your business’ performance. That is where Key Performance Indicators (KPIs) come in. Instead of waiting until year-end to see how your business performed, KPIs provide ongoing insight so you can make smart decisions in real time.
Gross Profit Margin – Measures how much profit you keep after covering direct project costs (labor, materials, subcontractors)
Cash Flow – Tracks the movement of cash in and out of the business
Work in Progress (WIP) Reporting – Compares costs incurred to billings for each project
Bid-Hit Ratio – Measures how many bids you win compared to how many you submit
Overhead Percentage – Shows how much revenue is consumed by indirect costs
Safety Incident Rate – Tracks jobsite accidents and safety violations
Choose the metrics that align with your company goals; project completion time, cost variance, quality control, safety, customer satisfaction, or the financial KPIs listed above.
Establish realistic benchmarks for each KPI. E.g. aim to complete projects within a specific time frame or keep AR days below a certain number.
Track timelines, budgets, safety reports, and customer feedback consistently.
Organize KPI data in a clear format—spreadsheets, dashboards, or project management tools. Visuals make it easier to see progress.
Use insights to adjust estimating practices, billing schedules, or safety training. KPIs are not just reports—they are tools for continuous improvement.
Construction is a high-stakes industry with tight margins and constant changes and challenges. By choosing the right KPIs, setting clear targets, and consistently tracking results, you will be able to gain a better understanding of where your company stands today and where it is heading tomorrow.
Our firm specializes in supporting construction companies and we can help you set up KPI tracking that work for your business.
~ the addtech crew
At adding technology, we know you want to focus on what you do best as a contractor. In order to do that, you need a proactive back office crew who has financial expertise in your industry.
The problem is that managing and understanding key financial compliance details for your business is a distraction when you want to spend your time focused on building your business (and our collective future).
We understand that there is an art to what contractors do, and financial worries can disrupt the creative process and quality of work. We know that many contractors struggle with messy books, lack of realtime financial visibility, and the stress of compliance issues. These challenges can lead to frustration, overwhelm, and fear that distracts from their core business.
That's where we come in. We're not just accountants; we're part of your crew. We renovate your books, implement cutting-edge technology, and provide you with the real-time job costing and financial insights you need to make informed decisions. Our services are designed to give you peace of mind, allowing you to focus on what you do best - creating and building.
Here’s how we do it:
Schedule a conversation today, and in the meantime, download the Contractor’s Blueprint for Financial Success: A Step by-Step Guide to Maximizing Profits in Construction.” So you can stop worrying about accounting, technology, and compliance details and be free to hammer out success in the field.
