8. Contribution margin: Is the project profitable for us?
The contribution margin is an absolutely central business parameter. However, especially in projects it is often treated stepmotherly, because tracking all revenues and costs is time-consuming – at least if you try to do it with pen and paper (or Excel). Project monitoring software like projectfacts relieves you of much of the work.
Labor costs: Decisive for labor costs is the time your team invests in a project. With projectfacts project time tracking, all your project members can track working hours on those tasks you have worked on. For billing, the software automatically accesses the appropriate internal hourly rate. Surcharges for night and weekend work are also automatically taken into account.
Material costs: This generally refers to costs incurred by third-party suppliers, often for materials, but possibly also for personnel or expertise. You can track the related invoices digitally with projectfacts by photographing them or dragging and dropping them into the system.
Project revenues: The project revenues are usually the easiest to determine, because they are usually based on the order value of the customer. In projectfacts the order is directly linked to the project.
Costs and revenues are automatically summarized in projectfacts and the contribution margin is calculated. From this you can see whether your project has been economically worthwhile. In addition, you also receive a variety of other information and options for analysis, for example …
- Which work packages cause particularly high costs?
- With which project tasks is your team most busy?
- In which project phase do the largest target/actual deviations occur?
- And much more.