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AI Billing in Construction: What It Is and How It Helps with Repetitive Tasks

Construction Blog

AI Billing in Construction: What It Is and How It Helps with Repetitive Tasks

Billing in the construction industry is not as straightforward as in other areas. It’s more complicated than providing a service and being paid for it. Construction projects often involve evolving scopes of work, fluctuating material prices, and intricate payment schedules.  Besides, there are different types of billing and such factors as retainage or markups. This […]

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Construction Budgeting: Complete Blueprint for General Contractors

Construction Blog

Construction Budgeting: Complete Blueprint for General Contractors

Published October 5, 2022. Updated August 1, 2025 Construction budgets have always played a critical role in how projects perform. That hasn’t changed. What has changed is the level of precision now required to keep jobs on track. A budget today is the framework for your project’s financial health. When done right, it tells your […]

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Construction Financial Management: From Budget to Bottom Line

Construction Blog

Construction Financial Management: From Budget to Bottom Line

Running a construction business means navigating constant change. Budgets shift, material prices rise, clients request last-minute revisions, and schedules rarely stay on track. Even with solid estimates and a reliable crew, profits can disappear quickly without effective construction financial management. Some of the most common financial issues as construction budgeting mistakes or inaccurate labor estimates, […]

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What is General Contractor Financing for Homeowners? [Types, Benefits, and Builder Tips]

Construction Blog

What is General Contractor Financing for Homeowners? [Types, Benefits, and Builder Tips]

Financing has become a quiet dealbreaker in residential construction. Even motivated clients hesitate when they hit the funding wall. For builders, that’s time spent quoting jobs that never break ground. The solution is to offer clear, accessible financing and construction loan options upfront. When builders understand the tools available and frame them properly, projects move […]

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How to Calculate Labor Cost in Construction the Right Way [Key Formulas and Factors]

Construction Blog

How to Calculate Labor Cost in Construction the Right Way [Key Formulas and Factors]

Ever wrapped up a project only to realize your labor costs ate into your profit more than expected? Builders often find labor as one of the most unpredictable expenses in construction. While managing a small residential remodel or a large-scale commercial build, knowing how to calculate labor cost in construction the right way can mean […]

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What Is the Schedule of Values (SOV) in Construction: Complete Guide 

Construction Blog

What Is the Schedule of Values (SOV) in Construction: Complete Guide 

Ever been stuck waiting on a payment because something got “lost in the paperwork”? Or had a client question a line item on your invoice months into the job? Those are exactly the problems the schedule of values (SOV) solves.  For most builders working on larger or bank-financed projects, the SOV acts as a must-have […]

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Construction Purchase Order: Definition, Workflow, and Benefits

Construction Blog

Construction Purchase Order: Definition, Workflow, and Benefits

One overlooked purchase order (PO) can disturb an entire timeline. One missing detail can lead to thousands in unexpected costs. Procurement, especially in construction, isn’t only about placing orders. Here, we have control over risk, stay within budget, and keep vendors aligned with the job. Still, many construction teams rely on multiple tools and informal […]

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What are Construction Draws? Key Processes and Challenges Explained

Construction Blog

What are Construction Draws? Key Processes and Challenges Explained

If you’ve been in construction long enough, chances are you’ve already dealt with construction draws, even if you don’t call them that. It’s one of those terms that pops up around contracts, payments, and bank-financed projects, usually when you’re knee-deep in paperwork or waiting on a bill. Construction draws are a central part of the […]

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5 Financial Construction KPIs Every Contractor Should Track

Construction Blog

5 Financial Construction KPIs Every Contractor Should Track

What’s the point of doing the work if you don’t know whether it’s actually paying off? This may sound harsh, but as many contractors struggle with performance reviews, it is more than just a rhetorical question. Whether you’re managing one or ten projects, tracking key construction KPIs is what separates profitable businesses from those just […]

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Construction Accounting Explained: Key Terms, Tools, and Techniques

Construction Blog

Construction Accounting Explained: Key Terms, Tools, and Techniques

Construction accounting is a unique branch of accounting that reflects the specific financial needs of contractors and construction companies. It’s not a parallel universe, but it’s worth knowing some important differences between construction-specific accounting and other types of business accounting. The projects are usually larger and more complex than other business ventures. So, the impact […]

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Best Construction Job Management Software 2025 | Top 5 Picks

Construction Blog

Best Construction Job Management Software 2025 | Top 5 Picks

Keeping construction on track isn’t easy. Between construction project management, budgeting, and scheduling, there’s a lot to manage and without clear systems in place, things can quickly fall through the cracks. It can all become even worse when miscommunication and unexpected costs start creeping in. Construction job management software helps builders take everything under control […]

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6 Critical Construction Budgeting Mistakes to Avoid

Construction Blog

6 Critical Construction Budgeting Mistakes to Avoid

Budgeting is one of the challenging parts of construction projects. It is estimated that 9 out of 10 construction projects experience budget overruns. It is so tricky that even the most seasoned professionals often make construction budgeting mistakes, which cause delays and, in worst-case scenarios, lead to project failure. These mistakes can stem from a […]

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Cash Flow Management in Construction: Everything You Need to Know

Construction Blog

Cash Flow Management in Construction: Everything You Need to Know

Did you know that 82% of construction companies failed not because of their profits, but due to improper cash flow management? And, it is not surprising that when cash does not come up on time to cover what is needed, the entire operation can start fluctuating, leading to failure. That’s why strategic cash flow management […]

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Construction Profit Margin vs. Markup: Guide for Contractors

Construction Blog

Construction Profit Margin vs. Markup: Guide for Contractors

Construction profit margin vs. markup is one of the most misunderstood financial concepts in the industry. Many contractors confuse the two, resulting in underpriced bids and disappointing profits. Understanding how to calculate profit margin and markup correctly is essential to pricing jobs effectively and running a profitable construction business. In this guide, we clarify the […]

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Construction Profit Margin: What It Is and How to Improve Yours 

Construction Blog

Construction Profit Margin: What It Is and How to Improve Yours 

Construction profit margin is one of the most important financial indicators for contractors, yet it’s also one of the most misunderstood. With unpredictable material costs, labor shortages, scope changes, and narrow bid competitiveness, turning a consistent profit in construction is becoming harder each year. Even a minor miscalculation or delay can erode your bottom line. […]

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Construction Job Costing: A Smarter Way to Stay on Budget and Maximize Profits

Construction Blog

Construction Job Costing: A Smarter Way to Stay on Budget and Maximize Profits

Ever wondered where all the money goes in construction projects? Our industry doesn’t rely solely on winning bids, but also on how well you manage costs after the contract is signed.  From tracking labor and materials to identifying cost overruns before they spiral, construction job costing gives builders the clarity and control they need to […]

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Construction Soft Costs: Overview, Types, and the Best Practices for Managing Them 

Construction Blog

Construction Soft Costs: Overview, Types, and the Best Practices for Managing Them 

In construction, having a precise estimate serves as a building block for any project’s success. However, it is not only the bricks, cement, or wood that make up the entire cost. There are some intangible expenses hidden behind closed doors that are often overlooked. To help you make an accurate estimation for your project, we […]

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How to Reduce Construction Costs Without Compromising Quality

Construction Blog

How to Reduce Construction Costs Without Compromising Quality

Tracking construction costs is a crucial aspect for builders. With increasing prices for materials, shortages of workers, and unexpected delayed expenses can quickly add up; therefore, practical steps should be taken to keep them in check 🧾🔍. Builders who actively manage construction costs can save a lot of money while keeping quality high. Implementing the […]

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Construction Loans: A Detailed Guide for Construction Companies

Construction Blog

Construction Loans: A Detailed Guide for Construction Companies

Construction loans are important for funding building projects but the approach may differ depending on the borrower. For construction companies, these loans support large developments with specific financial requirements. Similarly, they are helpful tools in helping to manage cash flow and financing big projects. Identically, it is important to understand construction budgeting, so that your […]

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FHA Construction Loans: Pros, Cons, Steps, Alternatives, and More

Construction Blog

FHA Construction Loans: Pros, Cons, Steps, Alternatives, and More

While planning to build a dream from scratch or just remodel the kitchen, financial uncertainty can be a barrier. FHA construction loans might be the solution you’re looking for – but are they the best fit for your construction budget planning? Understanding all the details before signing up for a 30-plus-year mortgage is crucial for […]

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5 Types of Construction Cost Estimation and How to Do It

Construction Blog

5 Types of Construction Cost Estimation and How to Do It

The wise construction manager knows that the actual cost of any project is only realized once the task is complete and all financial obligations have been accounted for. That’s because too many predictable and unpredictable factors can affect the cost of a major construction project. Meanwhile, however challenging the task of predicting the total cost […]

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Home Construction Loans Explained: Steps, Requirements and More

Construction Blog

Home Construction Loans Explained: Steps, Requirements and More

Last updated August 2025 When planning to build a dream home, understanding the work process with home construction loans is equally crucial for homeowners and builders. Designing and building a house from scratch seems exciting and straightforward on paper – choosing custom finishes, new furniture, and watching your vision take shape. But as soon as […]

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Detailed Construction Project Cost Breakdown [Examples Included]

Construction Blog

Detailed Construction Project Cost Breakdown [Examples Included]

Unexpected cost overruns and delays are the last things we expect when it comes to construction project cost breakdown. An unsettling nationwide trend shows construction projects often exceed their budget by at least 16%, thus highlighting the importance of detailed planning and estimation. To help you avoid such unwelcomed surprises, we have put together a […]

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QuickBooks for Construction: Bookkeeping with Essential Integrations

Construction Financial Management

QuickBooks for Construction: Bookkeeping with Essential Integrations

How do you manage to keep track of your construction company’s finances with so many moving parts at the job site? Your answers may vary, but using QuickBooks for construction is a highly recommended solution by many contractors and bookkeepers.  If you’re still among those who use the good-old Excel accounting, this article will help […]

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6 Main Construction Billing Methods | Which Is Right for You?

Construction Blog

6 Main Construction Billing Methods | Which Is Right for You?

Have you ever considered how the construction billing methods you choose impact the success of your project? Selecting the appropriate billing method is not a decision to be taken lightly. It goes beyond mere preference; it’s about understanding the balance between ensuring timely payments and maintaining the financial health of the project. With this in […]

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Construction Taxes 2024: USA, Australia, New Zealand, and Canada Guide

Construction Blog

Construction Taxes 2024: USA, Australia, New Zealand, and Canada Guide

Are you still struggling to navigate the complex web of construction taxes, uncertain about deductions, credits, and compliance requirements that could impact your bottom line? Lucky for you, we are calling all the builders in the USA, Australia, New Zealand, and Canada as we have gathered all the essential information about construction taxes. Save our […]

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Construction Invoicing: 5 Steps to Get Paid on Time In 2024

Construction Blog

Construction Invoicing: 5 Steps to Get Paid on Time In 2024

Last update February 2024 86% of construction professionals experience stress from slow payments and cash flow problems. This creates a chain reaction of financial hardship for the construction companies, resulting in reduced profits, project delays, etc. But hold on; why should this be the case? Getting your construction invoicing payments on time can be a […]

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General Contractor Markup 101: Everything You Need to Know

Construction Blog

General Contractor Markup 101: Everything You Need to Know

Did you know that the average general contractor markup on labour is 25% and higher, and on materials, it can be as high as 50%? What does this imply for your business as a builder? Considering these average markup percentages, it’s essential to ask yourself: Are you charging enough to impact your profitability positively, or […]

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Retainage in Construction: Security Measure for Owners, But What for Contractors?

Construction Blog

Retainage in Construction: Security Measure for Owners, But What for Contractors?

The construction industry is a risk-intensive business, where owners have to make sure that their investment is secure while contractors are trying to maximize their profit margins. Considering the sensitive nature of construction projects, where each party has its own vested interests, each of them also tries to add more layers of security for their […]

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In-Depth Guide to Maximizing Construction Payment Management

Construction Blog

In-Depth Guide to Maximizing Construction Payment Management

Construction payment management can be a challenging process, as common issues such as payment disputes, lack of proper documentation, and poor cash flow management often occur. These issues can lead to financial instability, strained relationships with clients, and legal disputes. To help construction business owners and managers overcome these challenges, we’ve created an in-depth guide […]

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Contractor Payment Terms | Everything You Need to Know

Construction Blog

Contractor Payment Terms | Everything You Need to Know

Are you curious about handling contractor invoices without any hassles or issues? In the construction industry, contractor payment terms are as important as hiring professional contractors. A lack of a payment agreement or a poorly designed one can lead to project delays and, in some cases, project termination.  In this article, we will explore what […]

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No Penny Is Underlooked: 5 Types of Construction Cost Estimation

Construction Blog

No Penny Is Underlooked: 5 Types of Construction Cost Estimation

The wise construction manager knows that the actual cost of any project is only realized once the task is complete and all financial obligations have been accounted for. That’s because too many predictable and unpredictable factors can affect the cost of a major construction project. Meanwhile, however challenging the task of predicting the total cost […]

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Construction WIP (Work-in-Progress) Report: How to Track Finances?

Construction Blog

Construction WIP (Work-in-Progress) Report: How to Track Finances?

Managing the financial part of a construction project is a complex task. As the project grows, keeping track of figures at all phases becomes crucial.  The risk of “missing the point” during a long construction project is high if you don’t do it on time.  For this reason, general contractors usually use a construction work-in-progress […]

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Manage Payments Reliably: Top 9 Contractor Invoice Software in 2025

Construction Blog

Manage Payments Reliably: Top 9 Contractor Invoice Software in 2025

Published on November 1, 2022. Updated on August 25, 2025 Regardless of the sphere of your construction activity, as a contractor, you will have to deal with invoicing. Creating accurate invoices can be as time-consuming and frustrating as dealing with clients who don’t pay on time.  Documentation management and automation are crucial to streamlining workflow […]

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