Everyone would like to say budgets are set in stone.
That they live by the budget.
That they die by the budget.
But the truth is, for many, budgets are fickle, constantly changing with the project as unexpected work and costs arise.
If there’s one place that notoriously known for going over budget, it’s Hollywood. Ever heard of the movie Heaven’s Gate? It was director Michael Cimino’s follow up to the Oscar winning movie The Deer Hunter. The budget for Heaven’s Gate was set at $11 million, but by the time it was finished, things had spiraled up to $44 million!
To make matters worse, the movie only grossed $3 million dollars at the box office. That’s a hit most businesses couldn’t take. In fact, the studio behind the movie ended up getting sold off and closed.
The advantage that businesses like contractors and construction companies have is knowing what they’re making ahead of time. A bid is made, a contract is signed, and an amount is due. The profit is estimated by the budget.
But that profit is only as good as the budget.
Estimate wrong and your profits will be poor. Go over budget and your profits will be poor. Construction management software like Sam Pro Enterprises can help you do all of this and more.
Know what your project is going to cost with incredibly accurate job cost accounting software. Track costs of labor, material, and subcontractors along with all your other expenses. Sam Pro if fully integrated so you can automatically generate and send reports, keeping you on track and on budget.
Sam Pro’s construction management software runs off Rules-Based Management as well as its signature automation software. In other words, you set the rules, parameters, and precautions, and the software does all the work for you as issues arise.
We’re talking about situationally adaptive construction management software. All of this is set up to keep the reins on your work as projects stay on or under the budgets you originally planned out.
Maybe if Heaven’s Gate had tools like that, it wouldn’t have lost so much many and been such a mess of a film. It may be too late for that film, but it’s not too late for your business to keep its budget in check and keep its profits high.