Construction Success Story – Cracking the WIP with new software, best practices
Abstract: This issue’s “Construction Success Story” examines the case of an owner who used an off-the-shelf spreadsheet program to generate his work-in-progress (WIP) reports. It got the job done, though the outdated software provided only a crude snapshot of his financials. After some of his competitors merged and profitability margins suddenly shrank, these reports made it difficult to know whether there was enough cash on hand to make payroll and pay the bills each month. His advisor recommended updating the company’s accounting software. The article shows the benefits the contractor obtained by automating some best practices.