What your trade computes that others do not
A construction site is not invoiced like a service. It is invoiced through progress statements, against completion, with a percentage that must be defensible line by line. Layered on top are mechanisms the rest of the economy ignores: retention withheld from every statement and released a year after handover, indexed price revision, and variations that must be accepted before they exist in the accounts.
Subcontracting doubles the machinery. Each subcontractor has their own contract, statements, retention and reverse-charge VAT, and at any moment you must be able to state what has been invoiced to the client on a package against what has been committed to whoever performs it. It is the most useful comparison in the trade, and it is almost always the missing one.
Finally, real cost price is built during the works, not after. Hours booked, materials issued, plant hire, travel: until those four arrive as they happen, the gap between quote and actual is discovered at close-out, when no decision is possible any more. A firm that knows after three weeks that a site is drifting can act; a firm that learns it at year-end can only note it.
What most firms work around by hand
These are the symptoms of a trade that counts more finely than the tool meant to follow it.
- Progress statements are built in a spreadsheet, site by site.
- Retention is tracked on a separate list, and sometimes forgotten at release.
- Site hours are recorded on paper and re-keyed at the end of the week.
- A site's cost price is known once the site is finished.
- What is committed to subcontractors cannot be compared to anything in real time.
- Variations are negotiated from memory, with no record of the agreement.