Exceed your Project Profitability Goals - Three Steps to Make the Target a Reality-Exceed your Project Profitability Goals - Three Steps to Make the Target a Reality Slides

Exceed your Project Profitability Goals - Three Steps to Make the Target a Reality Slides

Pdf Summary

This educational program, presented by Don Archibeque and Tom Vandervort of Planifi, focuses on exceeding project profitability goals in the architecture, engineering, and construction (A/E/C) sectors through a structured three-step approach:

1. <strong>Plan for Profitability:</strong> Set clear profit targets at the project's outset, based on detailed scope and budget consensus. Profit goals should be broken down by project phase, task, and discipline. Emphasis is placed on designing and delivering what has been paid for rather than pursuing engineering excellence beyond the agreed scope. 

2. <strong>Manage to Your Goal:</strong> Employ real-time tracking and forecasting methods such as "Percent Complete" earned value analysis to measure progress based on remaining work rather than billed dollars. Regular check-ins prevent surprises, allowing for course correction. Managing resources efficiently is crucial, as overspending even slightly can result in significant profit loss that must be compensated for in subsequent projects.

3. <strong>Overcome Barriers and Achieve Success:</strong> Use tools like no-cost change orders to document additional work and get client approval early, increasing change order capture rates from 10% to 90%. This transparency fosters client trust, predictable outcomes, better time management, and financial consistency. Clear communication strengthens team morale and improves client experience.

Overall, the approach promotes consistent project financial performance, early issue identification, scope clarity, and improved forecasting. It also benefits firms by creating future leaders and building long-term client trust. By managing projects with these principles, A/E/C firms can reliably meet and exceed profitability targets, delivering predictable results and enhancing both client satisfaction and internal collaboration.

Keywords

Project Profitability

Architecture Engineering Construction

Plan for Profitability

Manage to Your Goal

Earned Value Analysis

Percent Complete Tracking

Change Orders

Client Trust

Financial Forecasting

Project Management