Design firms are always looking for ways to improve their project management and execution. One area that is often overlooked is the financial side of things. This article contains three (3) simple project financial metrics that every design firm can use. There are a few different types of project financial metrics, but three simple ones that every design firm should be tracking are job to date spent, estimate to complete, and estimate at complete.
Job to Date (JTD):
For most design firms, they primary objective is to manage labor. Project managers often have little control over subcontractors and consultants. JTD is the amount of labor spent to date on a project. This metric is by nature backward looking and often comes from an accounting system.
Estimate to Complete (ETC):
ETC is the amount of planned labor (at cost or bill) that is required to complete the remaining work on the project from the perspective of the project manager. This metric is by nature forward looking.
Estimate at Complete (EAC):
These three metrics will help you see if your projects are on schedule and on budget. If your estimate at complete is less than your labor fee, then you know you're under budget! Tracking these project financial metrics is a simple yet effective way to keep tabs on progress and ensure successful completion of any given design project - both big and small.
Leading design firms use systems such as Planifi to ensure that Project Managers have complete access to historical data as well as powerful tools to manage Estimate to Complete.
Example of Project Metrics from Planifi:
Conclusion
Tracking project financial metrics is a simple yet effective way to keep tabs on progress and ensure successful completion of any given design project - both big and small.
By monitoring job to date spent, estimate to complete, and estimate at complete, firms can stay on schedule and budget while executing their projects flawlessly.
Planifi
Planifi provides project management software for architects and engineers. Our software enables your design firm to execute projects on schedule and on budget. Our simple metrics—job to date spent, estimate to complete, and estimate at complete—allow you to track your progress and ensure that your project stays on track. Contact us today to learn more about how our software can help you manage your next project!
Example of Profit Pie from Planifi:
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