Fade-Gain Analysis (Template)
- Admin
- 15 hours ago
- 1 min read
You should be tracking how well you're doing on a project based on your original estimate.
You originally won a contract for $1,000,000. You estimated total costs of $600,000 which results in a gross profit of $400,000 or 40%. Not bad! But that was a year ago. How is that project doing now? Well, with deducts, we have a contract price of $900,000 and total estimated costs are now $850,000, resulting in a gross profit of $50,000 or 5.6%. What happened?! We went from $400,000 in gross profit to $50,000, a $350,000 decrease or 34.4% decrease. Time to dig around to find out. Was it the project owner, general contractor, location, crew, or a mixture of all? You have some explaining to do.
I have attached a template below so you have no more excuses!
I will be working on a video soon to provide further guidance. Thanks!
Ara
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