Enter four numbers from one job — contract value, estimated total cost, cost to date, and billed to date — and get percent complete, earned revenue, over/under billing, and margin, computed the same cost-to-cost way your CPA and surety expect.
This calculator runs the standard cost-to-cost percentage-of-completion math used on construction WIP schedules: percent complete is cost to date divided by estimated total cost, earned revenue is percent complete times the revised contract value, and over/under billing compares what you have billed to what you have earned.
Overbilled (billings in excess of costs and estimated earnings) is a liability — you have collected for work not yet performed. A little is healthy for cash flow; a lot can hide a losing job. Underbilled (costs in excess of billings) is an asset — work performed but not yet invoiced, which usually means a pay application is overdue. For the full walkthrough, columns, and the mistakes that break a WIP, read how to build a WIP schedule.
Two cautions built into the math: percent complete is capped at 100% (cost overrunning the estimate means the estimate is wrong, not that the job is 110% done), and cost to date should be actual, source-document cost — including received-but-unbilled material — not an estimate.
This is one job, one month. A real WIP schedule runs this for every open job, every month, with cost to date pulled from job costing and billings pulled from your pay applications. That is what WIP schedule software does automatically.
SitewideOps computes cost-to-cost WIP across your whole project list from real job costs and pay applications, with month-end snapshots your surety can read.
Anyone interested gets a free 21-day demo account: the full product, every feature, no credit card.