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Construction Finance & AccountsCase 06 of 10

Project-wise cost visibility for a construction company

A mid-sized construction contractor

  • RegionKarnataka
  • Scope25 active projects
  • Timeline4 months
  • MarketsIndia
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01

Industry overview

What is shaping construction

Construction materials are chosen by a chain of people: engineers, contractors, masons and individual homebuilders. Site conditions, credit and word-of-mouth all matter.

  • Masons and contractors strongly influence material brands
  • Individual homebuilders rely on trusted advice
  • Site safety and quality standards are rising
02

Client background

A mid-sized construction contractor, working in Karnataka. Client identity is withheld to protect confidentiality.

Organisation
A mid-sized construction contractor
Sector
Construction
Team engaged
Finance & Accounts
Services
MIS & financial reporting, Accounting & finance consulting, Data analytics & dashboards
03

Client challenge

Management only discovered cost overruns when projects ended, because costs were not tracked consistently by project.

04

Research objectives

  • Deliver on the brief: project-wise cost visibility for a construction company.
  • Design around the real needs of active projects.
  • Establish accurate, reconciled numbers management can rely on.
  • Put a reporting and compliance rhythm in place that runs on time.
05

Target audience

The work focused on 25 active projects.

  • active projects25

Audiences we typically reach in construction

Contractors and masonsCivil engineers and architectsIndividual homebuildersMaterial dealersSite workers

06

Geographic coverage

Coverage: Karnataka. Market: India.

  • India
07

Research methodology

A structured finance engagement: review the current process, set up controls, run the routine and report.

  1. 1Brief
  2. 2Cost tracking redesign
  3. 3Project dashboards
  4. 4Insight

We restructured accounts with project codes, introduced monthly cost-to-complete reviews and built dashboards comparing budgets with actual costs by project.

MIS & financial reportingAccounting & finance consultingData analytics & dashboards

08

Sampling strategy

active projects
25
  • Every ledger, entity and transaction stream in scope was covered, with sample-based checks during review.
09

Data collection

Discovery Plan & design Build / execute Test & refine Launch & handover Indicative split of the 4-month timeline.
  • Source documents, bank statements and ledgers were collected through a secure shared workspace.
10

Data quality & validation

  • Maker-checker review on all entries
  • Bank and ledger reconciliations
  • Client approval before every filing or report
  • Supporting documents kept for every figure
11

Data analysis

  • Variance analysis against budget and prior periods
  • Ratio and trend analysis
  • Cash-flow view for management
12

Key findings

  • Monthly project-level visibility changed how projects were managed.
13

Recommendations

  • Build on the core insight: monthly project-level visibility changed how projects were managed.
  • Keep the monthly routine and review exceptions with management every period.
14

Business impact

  • Overruns became visible early enough to act, and the company improved its bidding by learning from completed projects.

Impact is described qualitatively.

15

Deliverables & next steps

  • Insight report and management presentation
  • Interactive dashboard
  • Monthly MIS pack and reconciled books
  • Compliance calendar and filings
  • Repeat the measure after changes are in place to track progress.
  • A natural follow-on question: what do homebuilders worry about most?

Client identity is withheld to protect confidentiality.

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