Optima’s client is a construction company that was completing profitable projects but still couldn’t explain why the business as a whole wasn’t making money, a disconnect rooted in how the company tracked (or didn’t track) its Work in Progress.
The Situation
The company had never properly managed its Work in Progress (WIP), leaving no clear way to see where money was going or why profitability swung from project to project. Some jobs were clearly profitable, but without job-level tracking, that success wasn’t translating to the bottom line.
Key Actions Taken
Optima cleaned up the company’s financials and rebuilt its approach to project-level cost tracking. Here is what we tackled:
- Implemented job costing to track expenses and profit on a project-by-project basis
- Cleaned up and standardized WIP reporting so it stayed accurate and current
- Established regular communication between field teams and the accounting department so project costs and timelines stayed aligned
- Helped the company reassess and adjust its overhead rates
- Advised on changes to how the company structured and managed proposals
The Results
- 20% increase in profitability year over year
- Clear, project-by-project visibility into where money was being made or lost
- Stronger alignment between field operations and accounting
- Improved overhead rates and proposal process supporting long-term margin gains