What usually goes wrong in construction
Margin only visible after completion
When costs sit in spreadsheets until a job closes, overruns are discovered when it is far too late to recover them through a variation.
Committed cost is invisible
Purchase orders raised against a job but not yet invoiced rarely appear in the cost position, so a project looks profitable right up until the invoices land.
Retention tracked manually
Retention held on both customer and subcontractor sides commonly lives in a spreadsheet, and money genuinely goes uncollected because nobody was tracking the release date.
Subcontractor compliance
Insurance expiry, tax status and certification are tracked separately from the purchasing system, so an expired certificate is caught late or not at all.
How Business Central handles it
Job costing with dimensions
Cost captured against job, phase and task using Business Central dimensions, so margin can be read by project, by contract type or by site manager without rebuilding reports each time.
Work in progress reporting
Cost to complete, percentage complete and WIP recognition calculated inside the ledger rather than in a spreadsheet reconciled once a month.
Progress and application billing
Applications for payment, certified values and variations tracked against the contract, with retention calculated and held automatically.
Purchase commitments
Purchase orders visible in the job cost position from the moment they are raised, so committed spend is part of the margin picture.
Subcontractor management
Supplier records carrying insurance and certification expiry, with blocking rules that prevent orders being raised against a lapsed subcontractor.
Plant and equipment
Fixed asset tracking with recharging to jobs, so plant costs land against the project that used them.
What changes
Live margin per job rather than a figure calculated after completion
Committed cost included in the project position
Retention released on time on both sides of the contract
One system for the ledger and the job cost report
Construction questions
Every service, applied to construction
We do not only do Business Central here. Each of our six practices looks different in this sector, and this is what each one means in practice.
Talk to someone who knows the sector
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