Annual Construction Volume (ACV) is a value used when pricing your 1Breadcrumb software subscription. This article will explain what ACV is, and how you can calculate it.
What is Annual Construction Volume (ACV)
Annual Construction Volume (ACV) is the total value of all the construction projects your company undertakes within a 12-month period. It's essentially the sum of the contract values for all the work you complete or have significantly progressed within that year.
Why is it Important?
1Breadcrumb's pricing is based on your ACV because it's a direct indicator of the scale and complexity of your operations. A higher ACV generally means you're managing more projects, larger projects, or a higher volume of work, and are therefore likely to benefit more from the features and capabilities our software offers.
How is it Calculated?
The basic formula for calculating your ACV is:
ACV = Total Value of Project 1 + Total Value of Project 2 + ... + Total Value of Project N
Where 'N' is the total number of construction projects you undertake within 12 months.
Example
As an example, let's say in the coming 12 months, you have the following projects:
- Project A: $500,000
- Project B: $1,200,000
- Project C: $800,000
Your ACV would be: $500,000 + $1,200,000 + $800,000 = $2,500,000
Best Method
Companies usually calculate their ACV using a Work In Progress (WIP) Report that considers all projects currently underway or starting within the 12 month period, and their completion dates to calculate total volume. This is a similar experience with Procore.
Need Help?
We understand that calculating your ACV might have some nuances depending on your specific business. Please don't hesitate to call your Sales Sponsor or Customer Success Manager if you have any questions or if you'd like to discuss your situation in more detail. We're here to help you determine the most accurate ACV for your company.