PROFIT MANAGEMENT OF BUILDING ORGANIZATIONS BASED ON THE AUTHORIAL BREAK-EVEN CONCEPT
Abstract
An algorithm of profits control of construction companies is developed, it allows constantly and consistently to manage the process, to measure the progress of the process results, to monitor the achievement of these goals, thus increasing the profitability and productivity of work. A concept of analysis of the breakeven activity of construction organizations is suggested. Its gist is in the measuring of 2 factors: 1) time and 2) velocity of breakeven. Its practical importance lies in its application by contractors and customers in the management of the costs and profits. The economic content of the concept of “break-even activity of construction organizations” is clarified. A new feature of the classification of construction companies, depending on how fast they reach the break-even conditions is introduced. The latter allows justifying the appropriateness of the choice of the most efficient of the contractor based on the ranking of construction companies, in accordance with the proposed classification, make competent management solutions to customers to assess the effectiveness of investment in construction. A map of the perception of investors in the market positions of the contractor's construction and installation work, which allows selecting the most effective functioning.
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