Remove Architecture Remove Cash Flow Remove Profitability
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A Cash Flow Guide for Architects

Levelset

Running an architectural firm is a bit different than other companies in the construction industry. However, like any other business, you need to maintain positive cash flow or you may find yourself unable to pay your workers and other expenses. Cash flow basics. Cash flow projections.

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The High Cost of Low Bids: When Contractors Compete on Price, Everyone Loses

Levelset

In addition, they make less per project and ultimately end up with too little profit, if any, to grow. Are architectural and design firms held to the low-bid method? Low Bidding Impacts Contractor Cash Flow. The average pre-tax net profit for general contractors is between 1.4 General contractors, I don’t envy you.

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Construction Business Owner Blogs

Construction Business Owner

There’s a commercial for a local kitchen design company that I often hear on the radio that starts, “The form has to follow the function…” According to Wikipedia, this phrase comes from a modern architecture and design principle that says to base the shape of a building or object on its intended purpose of function. Function Follows Form.

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KPIs for Architects: 3 Performance Indicators to Watch

Levelset

These data points provide insight into the profitability of a company and give owners an early indication of potential issues. Architectural business consultant Lucas Gray of Charette Venture Group recommends three KPIs to help firms measure their profitability: break-even point, utilization rate, and billable ratio. .

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Residential and Commercial Construction: 7 Crucial Differences

Levelset

For example, glass is generally reserved for small windows in residential construction, whereas large architectural elements—like huge glass facades—are used in many modern commercial buildings. Payment and cash flow. Payment and cash flow tend to function very differently on residential and commercial projects.

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PSMJ Resources Blog: Do Small Projects Need Schedules?

PSMJ Resources

2) Scheduling serves as the foundation for cash flow plans. The project schedule defines when the firm is using cash and when. cash flow plan to the start and completion of schedule milestones in. quality, speed, and profitability. Architectural Record. This is not at all acceptable at any time.

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Facilities are NOT Commodities – LEAN Best Management Practices

Building Information Management

Effective management of the numerous renovation, repair, maintenance, and construction projects requires direct involvement of Owners with their Construction, Architecture, and Engineering service providers. Contractors earn a reasonable profit, develop long term relationships with clients, and can better estimate cash flow.