What is the best way to determine the source of a financial loss on a job?

Determining the source of a financial loss on a job is effectively done by comparing job cost records to the budget. This process allows you to see where actual expenses diverged from initial projections, providing clear insights into specific areas that led to increased costs. By analyzing detailed job cost records, including labor, materials, and overhead, you can identify which aspects of the project exceeded the planned budget.

This financial comparison not only highlights where losses occurred but also allows for deeper scrutiny of specific line items and labor efficiency, ultimately leading to a better understanding of cost overruns. This data-driven approach can help in making informed decisions to prevent future financial losses, as it pinpoints exact issues rather than asking for subjective insights or general assessments.

Other options, while they may contribute to understanding overall project health or customer satisfaction, do not directly address the financial records and losses inherent to the specifics of the budget versus actual costs. For example, relying solely on customer feedback may provide qualitative insights but won’t give a clear financial breakdown, and increasing the workforce may lead to further expenses without addressing the root cause of the loss. Similarly, reevaluating the bidding process is forward-looking and useful for future projects, but it does not solve current financial discrepancies on existing projects.