What's the Problem?
Whose responsibility is it to check up on A/R?
The Project Managers
What is the baseline percent profit considered successful?
8% YTD (includes utilization)
When are sales allocated?
During Project set up in Vantagepoint
What happens if we don't charge for your time? e.g. you aren't utilized.
we don't make money!
Under reporting time causes what problems.
Lost revenues and missed opportunities to charge for our services.
What are ways in which Halff uses it's profits.
401K match, EOY bonuses, GROWTH – strategic hires, new offices, Innovation, team building budgets, lunches/office outings
What are actions to take if your project variance goes negative
Request Contract modification/ASA, Make it up in another phase
What are reasons why accurately charging time is important
Our time can be audited, timesheet data is used to make staffing decisions
What is the average SOQ cost?
$35k
What is the percentage of profit built into the NLM? AKA The percentage of profit you would achieve if you executed your project exactly how you estimated it.
16.67%
Where is your backlog allocated from?
Project Status Reports
If you have a project with a NLM of 2.67 what percentage of profit are you achieving.
NONE! You are losing money.
You are not even breaking even on the cost it is taking to produce the job. (Breakeven NLM is 2.875)
Not adjusting rate schedule for multi-year contracts and raises can cause what?
Prevent you from achieving 16.67% profit and 3.45 NLM on your jobs
what is preventing you from achieving 16.67% profit or a 3.45 NLM on your current projects?
Judges determine if answers are acceptable.
Excuses - get 0 points!!!
What do you do if an invoice has not been paid?
Provide the unpaid invoice with the next invoice.
If you make $50,000 / year, what is the hourly rate the company will charge for your time?
$85+ an hour
$24.04/hr * 3.45 =$82.93 Round up to $85
When your variance is negative, what does this tell you?
You are over budget!
The formula for how Net profit % is calculated?
Net Profit % = ($ Project Profit +/- $ Utilization Profit) / Revenue
What is a best practice for billing on Lump Sum Projects
Invoice % complete (doesn't always match your effort).
What makes up the 3.45 NLM?
[Salary (1) + Fringe Benefits (.5) + G&A (1.375)] * Profit Factor (1.2) = 3.45