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Achieving Accurate Project Costing in Multi-Site Construction
# Client Profile

A mid-sized construction company operating multiple concurrent projects, with employees often working across different job sites and pay rates in the same week.

# The Challenge

The client struggled to capture accurate labor costs for each project, leading to:

  • Budget Overruns – Inaccurate labor allocations made cost control difficult.
  • Profitability Blind Spots – Inability to measure true margins per project.
  • Billing Discrepancies – Incorrect cost data led to disputes with clients.
  • Inefficient Resource Allocation – No clear visibility into labor distribution.
# Our Approach

We conducted a deep-dive into project, payroll, and resource allocation workflows to uncover gaps. We then:

  • Cost Center Mapping – Defined cost centers for every project to ensure accurate allocation.
  • Rate Structure Optimization – Created dynamic rules to apply correct rates for each assignment.
  • Employee-Based Filtering – Built filters to ensure hours were charged to the correct project.
# The Solution in Action

We implemented an AI-powered project costing system integrated with real-time analytics. This included:

  • Advanced Cost Center Mapping – Automatically assigning labor costs to the right project or client.
  • Dynamic Rate Application – Adjusting pay rates based on project role and location.
  • Role-Based Reporting – Delivering accurate, compliance-ready project cost reports.
  • Real-Time Cost Insights – Enabling supervisors to monitor costs and adjust resources instantly.
# Results & Impact

  • Increased Cost Accuracy – Labor cost allocation accuracy improved to over 98%.
  • Improved Profitability Tracking – Real-time insight into margins for each project.
  • Enhanced Billing Accuracy – Fewer disputes and faster client invoicing.
  • Better Resource Management – Optimized labor distribution across projects.
# Key Takeaways

  • Automated Cost Allocation – Reduces manual entry and error risk.
  • Data-Driven Resource Planning – Supports smarter staffing decisions.
  • Built-In Compliance – Ensures financial reporting meets regulatory and contractual requirements.