In construction companies, OPEX can encompass expenses such as indirect labor, equipment maintenance, energy, insurance, permits, and other operational costs related to construction sites and office operations. Effective OPEX management in a construction company is essential to maintaining profitability and competitiveness. a project’s profits, especially in a sector where profit margins are often slim. What is COG in Construction. COG, or Cost of Goods Sold in construction, refers to the direct costs associated with the production and delivery of a specific project or service.
In the construction context, COG includes expenses directly list of russia cell phone numbers attributable to the construction of a project, such as material costs, direct labor, equipment rentals, subcontracting, and transportation expenses for delivering materials to the construction site. Unlike OPEX, which covers the general operational costs of the company, COG is directly related to the expenses incurred for a particular project or construction site. Reducing COG in construction is essential to ensure the profitability of each project, as it represents the most significant portion of direct costs in this industry.
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Poorly managed costs can jeopardize
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