Construction

Cost Analysis for Construction

Construction & ProjectsKnow 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....

Construction & Projects

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.

INDUSTRY · CONSTRUCTIONCOST & PROFITABILITY
BID VS ACTUAL COST+14%Project A+4%Project B-22%Project CBidActual
Illustrative. Bid vs actual cost across three projects.
The problem

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.

Why it matters

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.

Cost visibility maturity

How well do you cost a project?

Level 1
01
Reactive

Overhead added as a flat percentage. No view of cost by project type or phase.

Level 2
02
Structured

Cost codes per project. Some visibility, but indirect cost and rework stay blended.

Level 3
03
Analytical

Activity-based costing of supervision, plant and rework. Reasonable cost by project type.

Level 4
04
Optimised

TDABC by project, phase and crew — a live tool for bidding, planning and recovery.

How we engage

Three steps to true project cost.

01
Profit Check

A free diagnostic to estimate how much your standard overhead rate distorts cost on complex versus simple projects.

02
ProfitAudit 360

A 5–25 day engagement delivering true cost by project type and phase, a bid-accuracy review, and a margin-recovery roadmap.

03
Ongoing advisory

We embed the model in your estimating and project-control process, so every bid and every variation is grounded in real cost.

Comparing approaches

Overhead %, ABC, or TDABC?

ApproachProject AccuracyPhase & Rework CostBid Confidence
Percentage OverheadFlat % on direct cost
ABCActivity-Based Costing~~
TDABCTime-Driven Activity-Based Costing
Strong~PartialWeak
FAQ

Frequently asked questions.

Does this work for project-based businesses generally?
Yes. The same logic applies to any business that bids and delivers discrete projects — construction, engineering, fit-out and installation.
Can you cost by phase and variation?
Yes. The model traces cost by phase, crew and activity, so variations and rework are visible — not absorbed silently into overhead.
Will it integrate with our project accounting?
Yes. We build on your cost-code and ERP data — no new systems required.
How does this improve bidding?
By giving estimators true cost by project type, so margins are protected on complex work and you stop losing simple, profitable jobs to over-pricing.
Start here

Find out where your hidden margin lives.

The Profit Check takes 5 minutes. No data upload. You get a personalised profitability diagnostic.

M
Ask us anything
usually replies in minutes
Hi. I can answer the quick questions about cost, method and timing right here. For anything specific to your business, I'll hand you to Miguel on WhatsApp.
Free. No bot loops. Straight to a person.