Construction is messy. Multiple projects running at once, each with different subcontractors, materials, and timelines. A mid‑sized commercial builder came to us because they kept losing money on projects they thought were profitable. The numbers just didn’t add up. They had a separate spreadsheet for every job, but no way to see total cost across all projects. Every month end was a fire drill.
The Core Issue: No real‑time view of project costs
They’d buy materials in bulk for all projects, then guess how to allocate costs. Labour hours were tracked on paper—if at all. Change orders were handled by email, and nobody updated the budget. One project went 40% over budget because of five small change orders that nobody tracked. ERPNext Consulting came in and built a project costing dashboard that linked purchase orders, timesheets, and change requests to each project. Every cost was captured as it happened, not weeks later.
- Set up predefined budgets per project phase (foundation, framing, finishing)
- Implemented a simple change order approval workflow—any overrun needed a manager sign‑off
- Created a margin report updated daily: actual cost vs. budget vs. revenue recognized
The Outcome: Caught a $25,000 overrun in week three
On a new project, the dashboard showed material costs running 15% above budget within the first month. They discovered a subcontractor was using more expensive lumber than specified without approval. Stopped it immediately and saved $25,000. For the first time, the owner could tell which projects were making money and which were bleeding cash. Two unprofitable jobs got restructured.
Tips If You’re Starting Project Costing from Scratch
- Break each project into 3–5 major phases and set a budget for each—no more single lump sum
- Capture every cost (material, labour, subcontractor, permit) with a purchase order or timesheet
- Review your margin dashboard weekly—if a phase is over 90% of budget but only 60% done, you have a problem
ERPNext Consulting made project costing a habit, not a chore. The owner told me: “Now I sleep better because I know exactly where every dollar is going.” That’s the kind of control every builder deserves.