We have worked with many construction companies and groups in the UK. The key, whether the company is large or small is to run individual P & L’s and cashflows per project (site). Too often cashflows get consolidated making profitability and cost control per project difficult to establish, delaying corrective actions. Through managing each project site as a standalone entity and then applying central (group) costs the true position can be established.
All too often we see businesses operating on very low margins reliant on making up margin improvements through additions to the original specification. This can work, but only if the cost control system is well established and operated. Tight working capital through back-to-back payment structures with suppliers and subcontractors can be very effective when project schedules change.
The use of KPI reporting per project against a set criteria can be very effective.