Know the margin before the bid.
Construction margin is won or lost at tender. Yet most contractors bid on standard overhead rates that hide the true cost of complex, resource-heavy projects. ABC / TDABC gives you the real number.
The overhead-rate trap.
Standard percentage overheads spread indirect cost evenly across projects. But complex, multi-phase or remote jobs consume far more planning, supervision, plant and rework. The projects you win most easily may be the ones that lose money.
Bids built on the wrong cost.
When project cost is distorted, you underbid complex work and overbid simple work - winning the unprofitable jobs and losing the profitable ones. Cost overruns then surface only at completion, when it is too late.
How well do you cost a project?
Overhead added as a flat percentage. No view of cost by project type or phase.
Cost codes per project. Some visibility, but indirect cost and rework stay blended.
Activity-based costing of supervision, plant and rework. Reasonable cost by project type.
TDABC by project, phase and crew - a live tool for bidding, planning and recovery.
Three steps to true project cost.
A free diagnostic to estimate how much your standard overhead rate distorts cost on complex versus simple projects.
A 5-25 day engagement delivering true cost by project type and phase, a bid-accuracy review, and a margin-recovery roadmap.
We embed the model in your estimating and project-control process, so every bid and every variation is grounded in real cost.
Overhead %, ABC, or TDABC?
| Approach | Project Accuracy | Phase & Rework Cost | Bid Confidence |
|---|---|---|---|
| Percentage OverheadFlat % on direct cost | ✕ | ✕ | ✕ |
| ABCActivity-Based Costing | ✓ | ~ | ~ |
| TDABCTime-Driven Activity-Based Costing | ✓ | ✓ | ✓ |
