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What is Profit Fade?

Profit fade in the construction industry refers to the gradual reduction of profit margins on a project over time. It can occur due to a variety of factors such as unexpected delays, changes in scope, or cost overruns. As a project progresses, unanticipated expenses may arise, causing the initial profit estimates to diminish.Profit fade can be particularly detrimental to construction companies as it can eat into their bottom line and erode their profitability. In some cases, profit fade can even lead to financial losses on a project if not properly managed. To mitigate profit fade, construction companies need to closely monitor project costs, ensure accurate budgeting, and proactively address any issues that may arise during the construction process. By staying vigilant and proactive, construction companies can minimize profit fade

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"Month-end expense management time cut from 7–10 days to under 2 days."

Antony Martignetti

VP of Finance
Pacific Tech

"What was previously a full-time reconciliation role now takes about an hour per day."

Taylor Ricard

Controller
Moss Utilities

"Reduced time spent on Invoice entry by over 50%."

Roger Helwig

CFO & Owner
Victory Woodworks
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