RUNNING A PROFITABLE CONSTRUCTION COMPANY: REVISITED BREAK-EVEN ANALYSIS

Many companies have a tendency to spread out their operations into branches or separate corporations. The construction industry is a good example. With work being slow in some areas, it is sometimes more profitable to spread out the company into different areas in order to absorb more work and therefore create branches to the main office. When this is done, it is important to centralize these branches and analyze them as a whole to help the corporation. In this process, break-even analysis can be used to help analyze the operations. Consideration for a corporation having one or more branches involved in several projects takes time and teamwork. The team that is organized to help in the decision-making process needs a plan to determine how the project will affect the company and other jobs that are already in progress. With one corporation having two or more branches, it can be difficult to figure out where the company as a whole needs to be in order to turn a profit. The team must consider what each branch is doing in volume and what their break-even points are. This comes down to an important point of this research, which is "where to break even" before the profit consideration is made. This research provides an exemplary application of the break-even analysis to an actual construction company with one or more branches.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/0742597X
• Corporate Authors:

  American Society of Civil Engineers

  1801 Alexander Bell Drive
  Reston, VA  United States  20191-4400
• Authors:
  • Paek, J H
• Publication Date: 2000-5

Language

• English

Media Info

• Features: Appendices; Figures; References; Tables;
• Pagination: p. 40-46
• Serial:
  • Journal of Management in Engineering
  • Volume: 16
  • Issue Number: 3
  • Publisher: American Society of Civil Engineers
  • ISSN: 0742-597X
  • Serial URL: http://ascelibrary.org/loi/jmenea

Subject/Index Terms

• TRT Terms: Businesses; Case studies; Construction industry; Corporations; Economic analysis; Economic forecasting; Economic growth; Operations; Profitability; Profits; Rate of return; Return on investment; Revenues
• Uncontrolled Terms: Break even analysis
• Subject Areas: Administration and Management; Construction; Economics; Finance; Highways; Pipelines; I10: Economics and Administration; I50: Construction and Supervision of Construction;

Filing Info

• Accession Number: 00794121
• Record Type: Publication
• Files: TRIS
• Created Date: Jun 28 2000 12:00AM