In the construction industry, even profitable projects can’t always save the bottom line if the numbers behind the scenes aren’t adding up. In this case study, we’ll show how Optima helped a construction company get their finances in order and increase profitability by 20% year-over-year.
The Problem: Unmanaged Work in Progress (WIP)
This construction company came to us struggling to understand why they weren’t making money overall—even though some of their projects were clearly profitable. The issue? They had never properly managed their Work in Progress (WIP). Without clear tracking, it was impossible to see where the money was going or why profits were inconsistent.
Our Solution: Implementing Job Costing and Cleaning Up WIP
The first thing we did was clean up their financials and implement job costing to track expenses and profits on a project-by-project basis. We also ensured their WIP reports were accurate and up to date.
But numbers weren’t the only issue. We made sure that field teams were regularly communicating with the accounting department, so everyone was on the same page about project costs and timelines.
The Results: 20% More Profitable Year Over Year
With better tracking and communication, the company saw a 20% increase in profitability year over year. But that’s not all—they also adjusted their overhead rates and changed how they managed proposals, which turned out to be a total game changer for the business.
Why Job Costing and WIP Management Are Essential in Construction
In construction, finishing projects on time matters, but understanding where your money is going is what drives profitability. Without proper job costing and WIP management, even successful projects can lead to financial headaches.
Optima helps construction companies gain the financial clarity they need to stay profitable and competitive, ensuring your projects—and your business—are set up for long-term success.
