Construction ยท Roles
Construction roles
What owners, controllers, and project managers at a contracting business look at each month, and the metrics behind it.
These are typical patterns, not survey results. Every business is set up differently.
Owner / CEO
What they look at each month
- Total backlog and months of backlog, to plan hiring and bidding.
- Projected margin and fade across all open jobs.
- Total underbilling, as a cash signal.
- The few jobs with the largest cost variance.
Metrics
- Backlog: The work a contractor has under contract but has not yet done, in dollars.
- Gross margin by job: How much of each job's contract value is left after cost.
- WIP over/under billing: The gap between what a contractor has billed on a job and the revenue it has actually earned.
- Job cost variance: The difference between what a job was budgeted to cost and what it is now expected to cost.
Questions they ask
- Do we have enough profitable work ahead?
- Which jobs need my attention this month?
- Is cash tied up in unbilled work?
What a report for them usually shows
A one-page summary: backlog, projected margin, total over and under billed, and a short list of jobs to discuss.
Controller / CFO
What they look at each month
- The WIP schedule for every open job, after the month-end close.
- That earned revenue ties to the financial statements.
- That margin fade on each job has an explanation.
- Backlog and WIP for the surety and lender package.
Metrics
- WIP over/under billing: The gap between what a contractor has billed on a job and the revenue it has actually earned.
- Gross margin by job: How much of each job's contract value is left after cost.
- Backlog: The work a contractor has under contract but has not yet done, in dollars.
- Job cost variance: The difference between what a job was budgeted to cost and what it is now expected to cost.
Questions they ask
- Is the WIP schedule ready to send?
- Which forecasts look stale?
- Do overbillings and underbillings each make sense?
What a report for them usually shows
The standard WIP schedule layout with totals for overbilled and underbilled, plus margin change since last month.
Project manager
What they look at each month
- Cost variance by cost code on each of their jobs.
- Their cost-to-complete forecast, updated for the month.
- Over or under billing on their jobs, and whether billing keeps pace with work.
- Change orders that are pending or not yet entered.
Metrics
- Job cost variance: The difference between what a job was budgeted to cost and what it is now expected to cost.
- WIP over/under billing: The gap between what a contractor has billed on a job and the revenue it has actually earned.
- Gross margin by job: How much of each job's contract value is left after cost.
Questions they ask
- Which cost codes are running over?
- Is my forecast current?
- Am I billing for the work done?
What a report for them usually shows
One page per job: budget, estimate at completion, and variance by cost code, with margin and billing position at the top.