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      'Projected vs Current Margins' table

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      Projected vs Current Margins

      This table consists of 2 sets of figures

      Black - 'Projected' margin value and %

      The 'Projected' margin figure is based on the assumption that everything will go exactly as you have allowed for through to the end of the project. The 'Projected' margin can continuously be updated by making changes to the scope and costing information in the rate build up and bill of quantities. The more accurate you are with your costings, the more accurate the 'Projected' margin figure.

      Chalkstring is a product for the real world where you are not always able to define your works to the level of detail required to trust the projected margin figure alone. In the real world, you never have perfect information and nothing ever goes exactly as planned. This can result in a wide variety of factors incurring than originally allowed for across the whole project. These factors will cumulatively have an effect on your profitability.

       

      Blue - 'Current' margin value and %

      The 'Current' margin tracks the actual profitability of the project in real time, based on the current level of site assessed progress vs the current cost data. It assumes full payment and full inclusion of costs and accruals actually within Chalkstring at the current period of time. It gives the most accurate, real time figure that Chalkstring can, based on the information it holds. 

      The 'Current' margin figure, unlike 'Last Certified Application' figure, does include labour work in progress (WIP) accruals as well in the costs impacting it. The logic being if you have not updated the rate build up costings to account for WIP which labourers have not claimed for, then it may just be your sub contractors have not billed you for it yet but it remains liable.

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      Interpreting the figures

      • If the 'Projected' and 'Current' margin figures are close to each other, you can be sure that the project is running as planned to date.
      • If the 'Current' margin is significantly different to the 'Projected' margin, go to the 'Package Progress' bar chart and drill down to understand where you need to focus your attention.

      Note: The 'Projected' and 'Current' margins are the 2 key performance indicators that need to be watched to accurately predict the profit margin at the end of the job.

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