Quoting and margin
Projects that end up costing more than quoted.
The overrun only shows up at month end, when there's nothing left to do about it. Hours go unallocated and the next quote repeats the same mistake. Across 40 projects a year with an 18% overrun, that's €34,560 that never comes back.
- 40projects a year
- 60%of projects overrun
- €8,000average value per project
- 18%average overrun
What stops happening
Three things you no longer discover only at month end.
On top of the tools the company already uses. Each block shows what appears on the screen of the people doing the work.
01
The same job, the same price.
Two people quote the same way.
- A single price base, with breakdowns by type of job
- An approval flow with limits and a decision trail
- A history of what was quoted and what it actually cost
02
The real cost of each project, without side spreadsheets.
Knowing what it cost, not what you thought it would cost.
- Hours logged on site, as they happen
- Materials, subcontracts and travel booked to the right project
- Each project's contribution updated on its own
03
The overrun shows up while there's still time to fix it.
The alert arrives with the project still halfway through.
- An alert when spend goes past what was planned
- A projection of the final cost from what's already been spent
- A quoted versus actual report at close
Before and after
Before
Overruns were discovered at month end.
After
The alert arrives while the project is still halfway through.
Method
MEDIR
Whatever the area, the work that shouldn't need to exist is measured and removed the same way: five phases, always in the same order.
Discover the methodMap
Estimate
Decide
Implement
Review
Related
Insight · 6 min read
How much does each overrunning project cost?
Why margin gets lost between the quote and the invoice, and only shows up at close.
Read the insight
Talk to us
Two questions about your projects, and the conversation starts with data on the table.
We reply with numbers. Talk to the people who'll be on the project.
Book a call with GuilhermeGuilherme Ferreira · Head of Technology and Operations
30 min · video call