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Sales budgeting - construction services firm

What would be a good approach for a sales budgeting a project-centric services firm?

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Hi, i'm looking for some help in developing a method for sales budgeting for a professional services firm, based in the construction industry. The business details:

  • Surveying and architecture business
  • Traditionally looked to price based on either fees as % of construction contract value, or value added to a piece of land.
  • The industry is competative, and prices based on %, as above, are in many cases taken from industry accepted ranges. 
  • Professional internal staff deliver services through discrete projects, where one client may have numerous projects, and where the project boundary is typically set by the physical location of the site or building

Given the above, i'm struggling around the question of what should constitute a sales unit - a project, a man-hour etc?

Any advice would be most welcome

Joe

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By DJKL
24th Jan 2019 11:05

I would work on won projects, once a project won there is an estimated total fee based on initial professional estimate (delete outcome )of the parameters that set the fee- contract cost etc.

The trickier bit will be timing- forecasting when the stage payments under the contract will fall due or if re completion estimating completion, construction consultancy never runs to a fixed timetable.

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