ToolsOne job
Check your WIP.
Four figures off one job. It returns the same line a surety underwriter would read, and it does it in the browser without sending anything anywhere.
In short
How do you calculate percent complete on a construction job?
Percent complete is cost to date divided by the sum of cost to date and cost to complete. Multiply the contract amount by that percentage to get earned revenue. Billed to date minus earned revenue is your over or under billing: positive means you are overbilled, negative means you are underbilled.
The WIP lineOne job at a time
- Percent complete
- 68.7%
- Earned revenue
- $329,846
- Over or under billed
- -$19,846
- Profit at completion
- $90,000
You are underbilled by $19,846. You have done work you have not billed for.
What it means
The three answers
Overbilled is not profit. Underbilled is not a loss. Both are timing, and both are worth knowing before the job closes.
Percent complete
Cost to date over total expected cost. If you guess the cost to complete, you guess every number below it. We rebuild that number every month, not once at closeout.
Over or under billing
Overbilled means you have taken cash you have not earned yet. It spends like profit and it is not. Underbilled means you have done work you have not billed, and it is the cheapest money you will ever collect.
Profit at completion
Contract minus total expected cost. Watch it move month to month. A job that drifts down for three months in a row is telling you something the closeout will only confirm.
What this catchesHidden loss surfaced
“Eleven years thinking I understood my books. First month in, they found a job I thought made money had quietly lost about $80,000 over two years.”
General contractor, Phoenix AZ
$80,000
NextAustin, Texas
Which job is losing money right now?
Run one line here. We run every line, every month.