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Choudhry, R M, Hinze, J W, Arshad, M and Gabriel, H F (2012) Subcontracting Practices in the Construction Industry of Pakistan. Journal of Construction Engineering and Management, 138(12), 1353–9.

Cruz, N F d and Marques, R C (2012) Delivering Local Infrastructure through PPPs: Evidence from the School Sector. Journal of Construction Engineering and Management, 138(12), 1433–43.

Halman, J I M and Voordijk, J T (2012) Balanced Framework for Measuring Performance of Supply Chains in House Building. Journal of Construction Engineering and Management, 138(12), 1444–50.

Hanna, A S, Tadt, E J and Whited, G C (2012) Request for Information: Benchmarks and Metrics for Major Highway Projects. Journal of Construction Engineering and Management, 138(12), 1347–52.

Inyang, N, Al-Hussein, M, El-Rich, M and Al-Jibouri, S (2012) Ergonomic Analysis and the Need for Its Integration for Planning and Assessing Construction Tasks. Journal of Construction Engineering and Management, 138(12), 1370–6.

Kikuchi, S, Kronprasert, N and Easa, S M (2012) Aggregate Blending Using Fuzzy Optimization. Journal of Construction Engineering and Management, 138(12), 1411–20.

Mostafavi, A, Valentin, V, Abraham, D M and Louis, J (2012) Assessment of the Productivity of Nighttime Asphalt Paving Operations. Journal of Construction Engineering and Management, 138(12), 1421–32.

Sullivan, K T and Oates, H D (2012) Analysis of Arizona’s LEED for New Construction Population’s Credits. Journal of Construction Engineering and Management, 138(12), 1386–93.

Tamer, Z, Yoon, Y and Hastak, M (2012) Protocol for Profitability Analysis Using Internal Entities in Organizational Structure of Construction Companies. Journal of Construction Engineering and Management, 138(12), 1394–402.

  • Type: Journal Article
  • Keywords: Profits; Construction companies; Costs; Profitability; Profit margin; Profit; Construction companies; Cost centers; Profit centers;
  • ISBN/ISSN: 0733-9364
  • URL: https://doi.org/10.1061/(ASCE)CO.1943-7862.0000563
  • Abstract:
    Construction companies bid on projects and expect to obtain a profit by implementing awarded projects. As profit-generating entities, the construction companies are composed of cost and profit centers. The cost centers within the organization provide services required to fulfill the activities of the profit centers. The profit centers create billable work that is reimbursed by the owners of the projects. However, construction companies have had difficulty in winning new construction projects because of high competition, economic recession, and so forth. Also, many construction companies are not obtaining the profits they expect from the awarded projects. Therefore, a protocol to analyze profitability should be developed to understand the gaps between actual and estimated profit and the origins of loss of profit on construction projects. The purpose of this paper is to present a protocol for profitability analysis for the construction companies. The construction companies can utilize the protocol to identify relationships among entities of the cost and profit centers so that they can (1) recognize the changes in profit margins of projects, (2) improve their overall profitability by eliminating problems from the relationships that affect prospective projects, and (3) be selective of more profitable projects in the bidding phase. This paper applies the developed protocol to three construction projects executed by a midsize construction company with a functional organizational structure.

Taylor, T R B, Uddin, M, Goodrum, P M, McCoy, A and Shan, Y (2012) Change Orders and Lessons Learned: Knowledge from Statistical Analyses of Engineering Change Orders on Kentucky Highway Projects. Journal of Construction Engineering and Management, 138(12), 1360–9.

Wibowo, A, Permana, A, Kochendörfer, B, Kiong, R T L, Jacob, D and Neunzehn, D (2012) Modeling Contingent Liabilities Arising from Government Guarantees in Indonesian BOT/PPP Toll Roads. Journal of Construction Engineering and Management, 138(12), 1403–10.

Zhang, D, Haas, C T, Goodrum, P M, Caldas, C H and Granger, R (2012) Construction Small-Projects Rework Reduction for Capital Facilities. Journal of Construction Engineering and Management, 138(12), 1377–85.