Reporting & WIP
What is wIP schedule?
Definition
A work-in-progress schedule lists every open job with its contract value, costs to date, estimated cost to complete, billings, and the resulting over- or underbilling.
What it shows
The WIP schedule is the single most important report in construction finance. It reconciles what you've billed with what you've earned on each job, so you can see which projects are profitable, which are fading, and how much of your cash position is really owed back to the work.
- Contract value, including approved change orders
- Costs to date and estimated cost to complete
- Percent complete and earned revenue
- Billings to date
- Overbilling or underbilling per job
- Projected gross profit and margin
How often to run it
Monthly, as part of close. Quarterly WIP is common for sureties, but by the time a quarter closes, a fading job has already cost you a month of margin you could have caught.