ERP for Construction Sector: Hit-Office and Effective Budgeting with Overhead Cost AnalysisMr. Ganesh Chafekar, EDSS
Construction industry, has been enriches the economy for long. The industry always tries to find out the best, creative and economic for the customers.
There is always a Big risk involved in the construction projects irrespective of its size. Almost every Builder, Developer, Contractor, Consultant in their day to day activities take lot of decisions which may lead them to risk. We have been observing many projects failure due to financial, planning or executional mistakes. Construction ERP's plays a major role in these kind of decision making related things. There are many micro things where the concentration needs to be paid.
Overhead Cost AnalysisThe big players know the importance of Overhead costs. This particular factor is previously considered as just a % of the project cost. But now everyone knows the importance of it. The big projects – though it seems like a huge profit making projects, still due to negligence in deriving the Overheads, the projects may turn everything into losses.
The Overhead Cost Analysis is a vital part of the Project Budgeting. Zero budgeting is mostly preferred by the big contractors. So as to find out the exact Cost To Company of the project, Overhead Analysis plays a major role. To analyze the overheads at a micro level whether it may be the staff salaries, site installation expenses, technical & supervision fees of the experts, risk, small expenses on the sites, admin expenses, legal documentation related fees, stationery etc. everything can be forecasted properly and can be traced over the project duration continuously.