During the construction process, different types of costs are incurred. It is important to keep a track of them as well as to keep them under or equal to the budgeted amounts. Otherwise, the lack of capital may result in slowing or ceasing of the construction process. To continue construction at a good pace, a construction cost tracking worksheet is a good tool to use.
What is a construction cost tracking worksheet?
A construction cost tracking worksheet is an excel worksheet, that keeps a record of the costs associated with the construction process. As a construction project has different tasks and stages, the related costs vary as well. It means over the time of the construction process, there is a variety of costs that would be incurred. This worksheet lets the user record all those costs in separate fields. It lists down all the costs, and their budgeted and actual values as well as calculates any discrepancies between the actual and budgeted costs.
What are the advantages of a construction cost tracking worksheet?
There are many benefits linked to the maintenance of this cost tracking worksheet, which includes:
Helps in tracking the costs:
The user of this sheet can keep a track of the expenses, that are being incurred during the construction process. The sheet also lets him list and record each and every expense separately.
Aids in managing the costs and keeping them under budget:
Through this sheet, a check on the costs can be maintained, which can aid in controlling the expenses. In addition, it can be ensured that the discrepancy between actual and budgeted costs remains minimal.
Maintains the profitability levels:
If the costs are properly tracked and kept under budget, the expected profits become a possibility to achieve. On the other hand, if the costs would rise, the profits from a construction project would fall as well.
Stabilizes the stages of construction.
Construction is a step by step process, and every step has its own costs. If the expenses in one stage exceeds greatly from the budgeted amount, it might cause hindrances in the completion of the next stage. The sheet will allow the user to keep a check on the incurred costs at every stage.
What are the main components of a construction cost tracking worksheet?
This type of a worksheet can contain varying components, as per the requirements of the user. The user can be an individual person building his own home, a company building a property for someone, or a government/client organization keeping a track of the costs. However, generally, the following fields are present in such worksheets:
- Labor cost, budgeted, actual and discrepancy.
- Type of labor.
- Number of labors hired for different tasks, listed separately.
- Charges per labor per task.
- Material cost, budgeted, actual and discrepancy.
- Transport charges, budgeted, actual and discrepancy.
- Maintenance cost, if any.
- Additional charges or miscellaneous charges.
- Total budgeted cost.
- Total actual cost.
- Total discrepancy, if any.
- Notes or remarks, if any.
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