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We loved being a part of your podcast series APB - thank you for inviting us on!

Incredible foresight, watching this 24 months later. NZ and Australia going into resession with many thousands of building companies collapsing.

I think you would have to discern between overall net margin for tax reason and project margin. The builder in fact does achieve gross margins of 26 to 33% for his individual projects. The WIPAA puts the costs in the year they occured, but a P&L with WIPAA is not helpful for project controlling. Once this builder stops growing, his WIP amount goes down and all of a sudden he will have awesome margins...another way to kid yourself.

Yes, I did know. But thanks for asking.

Great video guys, will definitely spread the word about ABP

Absolutely correct Russell. Knowing how much and what constitutes you fixed costs is the most important information a business needs.

Historical it was 15%...now its about 54% ...around me maybe higher....its getting out of control in the US.

Promo'SM

Excellent advice. NOBODY getS rich in a vacuum.

Perfect

Just catching up on some of these episodes and thank you for the reminder of many things I knew but have relaxed on doing and a few new tips to improve - I am in the process of upgrading signage overall so very good timing

Do you all recommend that the cost of construction management/supervision for the project be included as a direct cost that should marked up 33% or is that cost considered overhead that will reduce the margins from 25% gross profit to approximately 10% net profit? Thank you!

Great information, thanks.

The video is good, but it's too complicated to digest due to the lack of illustration accompanying the information written on the board, not just spoken. What's the point of making a video?

Great show. Thanks for sharing your thoughts.

👍🏾👍🏾

Excellent segment, very helpful and always timely in reminding us about sticking to the Process! Thank you.

Great podcast, I felt like you were talking to my company.

sounds good

so you're saying on a million dollar home the gross profit should be 33% ? that seems greedy no?

How can I make a brochure of electronic

This is GOLD.

I remember getting you take about what to do if a client and for a breakdown of the quote. I can't seem to find it any where and I really need some advice about it. Could you please help me. Thank you team!

Great advice, thanks!

I'm peter I'm a painter from Kenya indeed painting job

Brilliant podcast

Brilliant video. Thanks

Just wow…!

Hi there, so if I’ve understood this right if the company has 5 jobs running the cost to each client would be lower as the overheads have been shared over 5 jobs But if only 3 jobs were running the rates and cost would be greater to the 3 clients, and pricing would appear inconsistent regarding future pricing for each client depending on how many jobs you had running at one time?

First start by learning The Last Planner by Glen Ballard and Greg Howell.

Assessing the viability” Nice 👍 👍

This is an exceptional channel, real and informative

𝓅𝓇o𝓂o𝓈𝓂

Thank you for the advice

Loving these podcasts and insights into what you do. Wish there was something like this specifically geared toward sparkies. Would love some insight into how to grow my business & profitability

Thank you for your company i will help your company to grow i want to support your business thank you to show me your. Company bye .malama faletolu

Thanks for making these series of podcasts! This is very informative! 👍

I have 1 year experience of selling software and was thinking of helping my dad’s home renovation business (tiling, flooring, painting, masonry). In order to sell these services do I need to have experience myself working in the construction business? Because I don’t understand the equipment or technical aspect

Is this journal entry only for accural accounting or also for cash accounting methods?

Why is it 🤔 when these companies go out of business 😒 they always owe creditors & workers 💰 money. Grabbing every cent to put in there own pocket.

Ever notice when these large companies go out of business 😕 they always owe money to there suppliers & workers. Yet the upper management, ceos & directors are always paid.... sucking out every cent for themselves.Time to get out the pitchforks & flaming sticks I say.

Every builder needs to down tools & temporarily work in any reasonably paying job for the next two years. Today’s financial conditions are not fleeting & so a large downturn has begun. Nothing lasts long term, but real estate values are now entering the reset period with acceleration certain. This will ensure future generations can afford a house or unit. We all want that. The stark contrast of large asset values in western countries with those of the many more poor nations has caused increasing unconventional migration attempts from the latter countries. This has to be controlled better. Tougher times are ahead for us for two to possibly three years.

What bearing do the weeks integer have on the fixed expenses number? You mention that you use the weeks to get the fixed expense per job, but it just looks like you've divided the Annual fixed expenses by the number of jobs.

Doesn't using Accrual accounting deal with this sort of overstatement of your financial position? It sounds like builder A is using cash accounting, and just counting what he has, rather than taking into account unpaid invoices to suppliers and potential progress payments coming in.

I'm here 1st

This channel is brilliant

Great content

Great video! Excellent value

yup. it saved me life. go get it if you need it. talk to someone about it.