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Labor is the most controllable cost in a contracting business. This item in often a major reason for a contractor going bankrupt. Estimators frequently anticipate the whole job can be completed at the speed of the most accomplished craftsman and prepare costs using that as a rule of thumb. Comparisons with similar completed jobs are often not consulted to see what the track record shows about their performance.
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Labor is the most controllable cost in a job shop. This item in often a major reason for a company going bankrupt. Estimators frequently anticipate the whole job can be completed at the speed of the most accomplished craftsman and prepare costs using that as a rule of thumb. Comparisons with similar completed jobs are often not consulted to see what the track record shows about their performance
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General Management:
Commitment Level / Time Requirement: As Required
Basic Functional Responsibilities:
1. Sets Compensation Plans and Rates
2. Reviews and Approves All Contracts
3. Final Responsibility for Regulatory Compliance (May Delegate Duties)
4. Approves all Capital Expenditures
5. Set Pricing Policies / and Profit Targets
6. Sets and Administers Company Policies
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Overhead Absorption Worksheet
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The purpose of this standard procedure is to define the calculation and use of the labor burden and overhead rates. The burden rate and overhead rate are vital tools used to determine the total costs involved in servicing your customers.
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Parts Pricing Matrix
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This standard procedure details the routines necessary for ABC Company to initiate and maintain a perpetual physical inventory system for materials and supplies carried on the companys vehicles and stored in the shop. Effective costing and pricing cannot be accomplished without knowing what we bought, what did we pay, how many did we buy, when did we buy it, and how long has it been here.
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Ready Mix Functions
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The Weekly Operations Report for ABC summarizes the activities of the operating departments as well as financial transactions each week.
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This report will assist ownership in mapping action plans which direct the company toward its goals. It is a format for reporting sales volume, cash movement and progress towards stated objectives. This standard procedure defines the components of the report and the methodology used to construct the report.
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