Menu costing: knowing which dishes actually make money
Menu costing works out what each dish costs to produce, including waste and trim. How to calculate it, how often to redo it, and why the popular dish is often the loss-maker.
Construction job costing software has to handle retention, variations, subcontractor valuations and cost against stage completion. What it must do, and the numbers a contractor needs monthly.
Construction job costing software tracks cost per project against the contract sum while the project is still running. Construction makes this harder than in most industries: money is retained, scope changes constantly through variations, subcontractors are valued rather than simply invoiced, and the cost that matters is cost against work completed rather than cost against calendar. A system that cannot express those four things produces a monthly report nobody trusts.
The question a contractor needs answered every month is whether the cost incurred matches the work done. A project 40% through its programme with 55% of its budget spent is in trouble even if it is on schedule, and that only shows when cost is compared with measured completion rather than with time elapsed. This is why valuations and cost reports have to be produced on the same cut-off date — different dates make the comparison meaningless.
Track committed cost, not just invoiced cost. Orders placed with suppliers are money already spent; a report that ignores them shows a healthy project right up to the month the invoices arrive.
Ettex Sheets can hold this while a contractor is running a handful of projects: cost codes per project, a committed-cost tab fed from purchase orders, valuations by cut-off date and a forecast tab that recalculates the final position. The same structure underlies any dedicated system, and it shares job codes with the wider job costing software approach for smaller works.
Cost the company has already obligated itself to through purchase orders and subcontracts, whether or not the invoice has arrived. Excluding it makes cost reports optimistic.
Retention withheld by the client reduces cash but not revenue; retention you hold from subcontractors reduces cash out but leaves the cost recognised. Both need tracking separately from the valuation itself.
Monthly, on the same cut-off date as the valuation, with a forecast final cost updated each time rather than only when problems appear.
Menu costing works out what each dish costs to produce, including waste and trim. How to calculate it, how often to redo it, and why the popular dish is often the loss-maker.
Restricted funds must be used for the purpose they were given for. How to track them separately, what counts as restricted, and why a healthy balance can still mean no money.
A commission structure rewards what it measures, including the things you did not intend. How to set rates, when to pay, and why complexity defeats the purpose.