Why is it important to keep accurate records of historical job site overhead costs?

Keeping accurate records of historical job site overhead costs is crucial for estimating future projects. These records provide valuable data that helps in understanding how much overhead is generally incurred for similar projects. When a company has detailed historical cost information, it can analyze past performance, identify trends, and calculate more accurate budgets for upcoming jobs.

Accurate historical overhead records enable better forecasting, allowing project managers to anticipate expenses and allocate resources efficiently. This is particularly important in competitive bidding situations, where precise cost estimations can impact the likelihood of winning contracts. Overall, effective estimation based on historical data helps ensure project profitability and improves financial planning.