No cost-to-complete view
The contract value is known and the cost to date is known, but the forecast final cost is a guess until it is too late to act.
Real Estate & Construction
Real estate and construction
Contractors, developers, project managers and property businesses where every project is a separate business.
Who this is written for: Managing directors, project directors, quantity surveyors, finance managers and property owners.
How this sector actually operates
Construction and property businesses are portfolios of projects, each with its own cost base, cash profile and risk. The central financial problem is knowing what a project will cost to complete while it is still running — because that number, not the contract value, determines whether the job makes money. Add retention, variations, subcontractor commitments, plant and material timing, and the gap between certified work and cash received, and the accounting becomes the control system rather than a record of the past.
The problems we address in this sector
These are the issues that recur. They are described as sector problems, not as claims about clients we have worked with.
Variations tracked separately from the contract
Approved and unapproved variations live in a file or an email thread rather than in the project cost, so the true position is unknown.
Site costs that never reach the ledger
Petty cash, local purchases, casual labour and plant hired on site are recorded late or not at all.
Retention and certification gaps
Retentions held, released and forgotten; certified values and invoiced values that do not reconcile.
Subcontractor commitments invisible
Committed spend against subcontract orders is not tracked, so the commitment is discovered when the invoice arrives.
Cash-flow timing risk
Materials and labour are paid in advance of certification and payment, and the gap is not forecast.
Property portfolios without ledgers
Rents, service charges, repairs and voids across a portfolio that cannot be analysed by property or tenant.
The work that follows
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Project costing structure
A cost coding structure by project and cost type — materials, labour, plant, subcontract, preliminaries — that supports forecasting and comparison between projects.
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Cost-to-complete reporting
Monthly reporting combining cost to date, committed cost, forecast to complete and forecast final margin, so problems surface while they can still be managed.
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Variation and claim register
A register of variations by status — instructed, approved, claimed, agreed — reflected in the project position rather than sitting outside it.
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Site cost capture
Practical capture of site purchases, casual labour and plant hire, designed for the reality of a site office rather than an accounting textbook.
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Contract billing and retention tracking
Interim valuations, certified amounts, invoicing, retention held and release dates tracked per contract.
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Subcontract and purchase commitment control
Commitment tracking against orders and subcontract agreements, with approval controls before commitment is made.
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Project cash-flow forecasting
Forecasting by project and in aggregate, reflecting certification lag, retention and payment terms.
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Property and portfolio accounting
Ledger structures for rent, service charge, repairs, voids and capital works, analysed by property, unit or tenant.
The reporting pack we would build
Reporting is where sector knowledge shows. A generic management pack tells every business the same thing; a useful one reflects how your sector makes money and where it loses it.
- Forecast final cost and margin by project
- Cost to date against budget by cost type
- Committed cost and open subcontract orders
- Variation register by status and value
- Retention held and due for release
- Project and group cash-flow forecast
- Property-level income, cost and occupancy for portfolios
Platforms and services for this sector
Platforms commonly used in this sector
Services we apply here
Accounting & Bookkeeping
Bookkeeping is not data entry. Done properly it is the discipline that turns daily transactions into numbers a managing director can rely on. We run t…
Service detailERP & Accounting Software Implementation
Most businesses do not fail with software because they bought the wrong product. They fail because nobody designed how the business would run inside i…
Service detailFinancial Advisory & Risk Management
Advisory work is useful when a decision has to be made and the numbers behind it are not clear. We analyse the position, model the options, quantify t…
Service detailBusiness Process Improvement
Software only automates the process you give it. If the process is unclear, undocumented and dependent on individuals, the system simply records the c…
Service detailStatutory and technical considerations
Contract revenue recognition, retention treatment and work-in-progress valuation have specific accounting implications that must be handled consistently between the management accounts and the statutory accounts. Where a project or contract has unusual terms, we document the treatment agreed so it is applied consistently across periods.
We do not publish rates, thresholds or deadlines on this website, because a figure that is out of date is more damaging than no figure at all. Where specific figures matter, they are given in an engagement against the position in force at that date.
Questions we are asked in this sector
Can we get cost-to-complete reporting reliably?
Yes, but it depends on honest input from project managers and on capturing commitments as they are made rather than when invoiced. The report is only as good as the forecast behind it, which is why we pair it with a review meeting where adverse forecasts can be raised without blame.
Do you already work with real estate & construction businesses?
This page describes the operating problems and reporting needs we understand in this sector, and the work that follows from them. It is not a claim about named clients. If you want references in your sector, ask us directly and we will tell you honestly what we can provide.
Do we need an ERP, or is accounting software enough?
It depends on whether your reporting relies on operational data — stock, jobs, production, projects, grants. If it does, accounting software will leave you assembling that data by hand every month, and an ERP is usually the cheaper option over three years. Use the solution finder for a preliminary view, then let us assess it properly.
Can you work with the system we already use?
Usually, yes. We review the configuration and the processes around it first, because many problems described as software problems are configuration or process problems. Where a rebuild is genuinely needed we will say so.
How long before we see a difference?
Some things are quick — a daily reconciliation routine, a proper aged receivables report, an approval framework. Others take a full cycle or two, particularly where data has to be corrected first. We set expectations in the scope rather than promising a timeline we cannot control.
What do you need from us to start?
A named person who can make decisions, access to the records and the systems, and time from the people who do the work. Implementation and process work fail on availability more often than on anything else.
Let’s build a stronger financial foundation for your business.
Tell us what you are dealing with. We will tell you honestly whether we can help, what it would involve and what it would cost.