• Beyond the Bid
  • Posts
  • Stop Bleeding Cash: Master Job Costing to Fix Profit Leaks

Stop Bleeding Cash: Master Job Costing to Fix Profit Leaks

And how to start breaking them down.

Author

Grant Fuellenbach
April 29th, 2025 • Estimated Reading Time: 43 minutes

A detailed, cinematic rendering of a high-end residential construction project, showcasing the latest job costing techniques and technologies. The image should convey a sense of professionalism, innovation, and problem-solving, with a focus on delivering exceptional value to the client.

TL;DR (Too Long; Didn't Read)

  1. Know Your Numbers

    Effective job costing isn't optional; it's the foundation for understanding true project profitability in residential construction.

  2. Plug the Leaks

    Hidden profit leaks from inaccurate estimates, scope creep, and mismanaged costs silently drain your bottom line.

  3. Track Everything

    Implement best practices like detailed cost codes, accurate labor burden tracking, and regular budget reviews to gain control.

  4. Be Proactive

    Mitigate leaks with rigorous estimating, iron-clad change order processes, and strong project management systems.

  5. Leverage Tech

    Use integrated software for estimating, project management, and accounting to streamline job costing and boost efficiency.

Table of Contents

01. Introduction:
From Busy & Broke to Profitable Growth

construction site with residential home being built, blueprints and calculator in foreground, professional builders at work, golden hour lighting, crisp detailed photography

The Common Problem

Are you running a successful $1-5M building or remodeling business, yet feel like you're constantly chasing cash? It's a common story: high revenue, packed schedules, but frustratingly low profits. This "busy and broke" cycle often stems from hidden profit leaks that silently erode your hard-earned margins.

The Solution

The solution? Mastering job costing.

This guide provides actionable insights into implementing effective job costing specifically for residential construction firms like yours. We'll cover the essentials, identify common pitfalls, outline best practices, share mitigation strategies, and touch on helpful technology.

Our Expertise

At GO First Consulting (www.gofirstconsulting.com), we help $1-5M remodelers and builders implement the systems needed for sustainable profitability. Let's get your profits flowing.

At GO First Consulting, we help remodelers and builders move beyond frustration and implement proactive, strategic approaches to talent. This article provides a playbook packed with creative and unconventional hiring strategies specifically tailored to help you find and keep the skilled labor your business depends on.

02. Job Costing Fundamentals:
The Why and What

What is Job Costing?

It's a detailed accounting method where you track all costs (labor, materials, subs, equipment, permits, allocated overhead) against each specific job. It's about knowing precisely what every project actually costs versus what you estimated.

A detailed, cinematic rendering of a high-end residential construction project, showcasing the latest job costing techniques and technologies. The image should convey a sense of professionalism, innovation, and problem-solving, with a focus on delivering exceptional value to the client.

Why is it Crucial?

  • Accurate Pricing: Understand true costs to create winning, profitable bids based on data, not guesswork.

  • Cost Control: Monitor active jobs, spot budget variances early, and take corrective action before profits disappear.

  • True Profitability: Determine which jobs, clients, or processes are actually making you money, guiding smarter business decisions.

For $1-5M firms, effective job costing is the bedrock of financial health and strategic growth.

Summary: Job costing systematically tracks all expenses per project, enabling accurate pricing, real-time cost control, and understanding true profitability.

Table: Comparison of Common Overhead Allocation Methods for Residential Builders/Remodelers

Method Name

How it Works (Concept/Formula)

Pros

Cons

Best Suited For (Residential Context)

% of Direct Labor Cost

(Total Overhead / Total Direct Labor Cost) × Job's Direct Labor Cost

Relatively simple; links overhead to labor activity 62

Distorted by high material/sub costs; assumes labor drives all overhead 58

Labor-intensive remodelers, companies where labor supervision/support is a primary overhead driver.

% of Total Direct Costs

(Total Overhead / Total Direct Costs) × Job's Total Direct Costs

Simple to calculate and apply 15

Assumes all direct costs drive overhead equally; can be inaccurate if cost mix varies widely 94

Companies with relatively consistent job structures and cost mixes; simpler operations.

Direct Labor Hours

(Total Overhead / Total Direct Labor Hours) × Job's Direct Labor Hours

Good for labor-intensive work; reflects time spent on job 15

Requires accurate labor hour tracking; may not reflect material/sub-driven overhead 58

Companies with accurate time tracking where overhead relates closely to job duration/effort (e.g., project management time).

Per Job Flat Rate

Total Annual Overhead / Estimated Number of Jobs

Very simple 59

Highly inaccurate unless jobs are identical in size, duration, and complexity 59

Potentially production builders doing highly standardized models (use with extreme caution); generally not recommended for custom builders or remodelers.

Machine Hour Rate

(Total Overhead / Total Machine Hours) × Job's Machine Hours

Good for equipment-heavy jobs 15

Requires tracking machine hours; less relevant if equipment is not a major cost driver

Niche applications, perhaps excavation-heavy site prep contractors; generally less common as primary method in typical residential building/remodeling.

Activity-Based Costing (ABC)

Identify cost pools & drivers; allocate based on activity consumption 62

Potentially most accurate; links costs to specific activities

Complex and costly to implement and maintain; may be overkill for smaller firms 132

Larger, more complex residential firms with diverse operations and sufficient resources to manage the system; companies seeking very precise cost allocation.

Note: Sources for table content include.15

03. Spotting the Saboteurs:
Common Profit Leaks

Plugging the Leaks: Key Mitigation Strategies for job costing in construction

  • Inaccurate Estimating

    • Underbidding labor (especially forgetting the fully burdened rate), materials, or subs; insufficient contingency; poor overhead allocation.

  • Scope Creep

    • Vague initial scopes; allowing changes without formal, priced, and signed change orders.

  • Labor Inefficiencies

    • Poor tracking of actual hours vs. estimate per job/task; not using the burdened rate; wasted time due to poor planning.

  • Material Issues

    • Waste from poor handling/storage; lack of tracking against budget; failing to account for price volatility.

  • Subcontractor Problems

    • Poor coordination causing delays; inaccurate cost tracking; payment issues.

  • Scheduling Delays

    • Pushing project timelines back increases overhead costs and impacts cash flow.

  • Poor Change Order Management

    • Failing to price comprehensively, get signatures before work, or update the job cost system immediately.

  • Misallocated Overhead

    • Not assigning indirect costs fairly, giving a false sense of job profitability; letting overhead grow unchecked ("overhead creep").

Summary: Profit leaks hide in estimating errors, uncontrolled scope, inefficient labor/material/sub management, delays, poor change order process, and misallocated overhead.

04. Building a Bulletproof System:
Job Costing Best Practices

  • Detailed Estimates & Cost Codes

    • Use templates, do rigorous takeoffs, and structure your Chart of Accounts with cost codes that mirror your estimates (e.g., adapted CSI/NAHB codes). Consistency is vital.

  • Track Labor Accurately

    • Mandate digital timesheets coded to the specific job and cost code. Critically: Calculate and use your fully burdened labor rate (wages + all employer-paid taxes, insurance, benefits, PTO) in estimates and tracking. Update it annually!

  • Track Materials with POs

    • Use job-specific Purchase Orders (POs) for significant material buys to track costs and deliveries against the budget.

  • Track Subcontractor Costs

    • Use formal agreements. Carefully match invoices to contracts/change orders and work completed before paying.

  • Regular Reporting & Review

    • Hold weekly or bi-weekly job cost review meetings. Analyze Estimate vs. Actual reports to spot variances, understand why they happened, and act fast. Review WIP reports monthly.

Summary: Accurate job costing needs detailed estimates/codes, tracking burdened labor, using POs for materials, diligent sub-cost tracking, and disciplined weekly Estimate vs. Actual reviews.

05. Plugging the Leaks:
Key Mitigation Strategies

  • Rigorous Estimating

    • Invest time upfront on detailed plans/specs; use historical data; always use burdened labor rates and proper overhead allocation; include 10-20% contingency.

  • Clear Contracts & Scopes

    • Use detailed, legally reviewed contracts with clear SOWs.

  • Standardize Processes (SOPs)

    • Document key workflows (estimating, scheduling, change orders, QC) in Standard Operating Procedures.

  • Strict Change Order Control

    • Formal written process; price comprehensively; get signatures first; update job cost system immediately.

  • Efficient Scheduling

    • Develop realistic baseline schedules; focus on on-time completion.

Additional strategies include disciplined budget reviews (hold those weekly meetings!), proactive communication using PM software, smart vendor/sub management, formalized QC to reduce costly rework, and vigilant cash flow management through forecasting and diligent invoicing.

Summary: Proactively mitigate leaks through better estimating, clear contracts, SOPs, strict change order management, efficient scheduling, disciplined reviews, clear communication, better vendor/sub management, QC, and cash flow vigilance.

06. Your Tech Toolkit:
Software for Job Costing Success

  • Accounting Software

    • Needs strong job costing features or integrates seamlessly (e.g., QuickBooks, Sage).

  • Project Management Software

    • Essential for $1-5M firms (e.g., Buildertrend, CoConstruct, JobTread). Streamlines scheduling, communication, documents, and real-time budget tracking.

  • Estimating Software

    • Improves accuracy and speed (e.g., Clear Estimates, Buildxact, Bolster).

  • Integration is Key

    • Ensure your systems (Estimating, PM, Accounting) talk to each other to avoid duplicate entry and ensure data accuracy.

  • Field Technology: Mobile apps for time tracking, daily logs, photos, and checklists feed data directly into your system.

  • Automation & AI: Tech can automate workflows; keep an eye on practical AI tools as they mature for SMBs.

Remember: Choose tech wisely (right fit, not overkill) and ensure team adoption through training for real ROI.

Summary: Use integrated Accounting, PM, and Estimating software to automate tracking, streamline workflows, improve accuracy, and provide real-time job cost data.

07. Frequently Asked Questions
(FAQs)

What's the biggest job costing mistake remodelers make?

Failing to calculate and use the fully burdened labor rate. This massively understates true costs and distorts profitability.

How detailed should cost codes be?

Match them to how you estimate and build – detailed enough for good tracking but not overly complex. Consistency is key.

Are weekly job cost reviews really necessary?

Absolutely. They are crucial for catching budget overruns early. Keep them focused and efficient – it's time well spent.

How do I start if I feel overwhelmed?

Begin with tracking labor hours accurately to jobs/codes and calculating your burdened rate. Then implement POs. Build incrementally and stay disciplined with reviews.

Go First: Maximize Profit in Your Construction Business

Design/build firm struggling with win rates or sales cycles? GO First's FREE 2-hour assessment identifies gaps & opportunities to help you take control and grow.

gofirstconsulting.com/strategy-call

08. Conclusion:

Take Control of Your Profitability

  • Sustainable Business

    • A more valuable, sustainable construction business

  • Reduced Stress

    • Financial clarity brings peace of mind

  • Consistent Profit

    • Predictable, healthy margins on every project

  • Job Costing Mastery

    • Understanding true costs and plugging profit leaks

A detailed illustration of a construction site with workers and equipment, highlighting the concept of "profit leaks" through visual metaphors.

The "busy and broke" cycle doesn't have to define your $1-5M remodeling or building business. Disciplined job costing is your path to predictable profits. By understanding your true costs, identifying leaks, implementing tracking best practices, adopting proactive strategies, and leveraging technology, you gain control.

It takes commitment, but the reward—consistent profit, reduced stress, and a more valuable, sustainable business—is immense. Stop letting profits slip away. Master your job costs, master your future.

09. Next Steps: Ready to Boost Your Bottom Line?

Actionable Recommendations for Residential Builders and Remodelers:

construction site with residential home being built, blueprints and calculator in foreground, professional builders at work, golden hour lighting, crisp detailed photography

The following steps provide a roadmap for implementing or improving job costing practices:

  1. Commit to Accurate Costing: Elevate job costing from a back-office task to a core management priority. Foster a culture where cost accuracy and timely reporting are valued by everyone.

  2. Implement/Refine Cost Codes: Develop or refine a cost code structure (adapting NAHB or CSI standards) that aligns with your estimating, project phases, and reporting needs. Ensure consistency across all projects and integrate with software.64

  3. Calculate Your TRUE Labor Burden: Meticulously calculate the fully burdened labor rate for each employee type, including all payroll taxes, insurance (WC, GL), benefits (health, retirement), and paid time off. Update this calculation at least annually or whenever significant cost changes occur (e.g., insurance renewals).28 Use this burdened rate in all estimates and job cost tracking.

  4. Select & Apply an Overhead Method: Choose an overhead allocation method (e.g., % Direct Labor Cost, % Total Direct Cost) that rationally reflects how your business incurs overhead. Apply it consistently to all jobs. Recalculate your overhead rate(s) based on actual expenses at least annually.58

  5. Embrace Technology Strategically: Invest in job costing software appropriate for your business size and complexity, prioritizing integration with your accounting system (e.g., QuickBooks, Sage).116 Implement mobile tools for field staff to submit time and expenses electronically.69 Ensure adequate training for all users.60

  6. Establish Rigorous Tracking Processes:

    1. Labor: Mandate use of digital timesheets coded to job and cost code.

    2. Materials: Use job-linked Purchase Orders; track deliveries; implement system for tracking inventory usage.

    3. Subcontractors: Use formal agreements; match invoices carefully to contracts/change orders and work completed.29

  7. Master Change Order Management: Implement a formal, written change order process. Price all changes comprehensively (direct cost + burden + overhead + profit + admin fee). Obtain signed client approval before starting changed work. Integrate approved change orders into the job cost system immediately.10

  8. Conduct Regular Job Cost Reviews: Schedule and hold mandatory weekly or bi-weekly job cost review meetings for all active projects. Analyze Estimate vs. Actual reports, identify variances, determine root causes, and implement corrective actions promptly.4

  9. Analyze WIP Regularly: Understand the components of your WIP calculation (Cost-to-Cost method is common). Review WIP reports at least monthly to monitor project financial health, revenue recognition accuracy, and billing status (over/under).24

  10. Close the Feedback Loop: Create a formal process to ensure that variance analysis findings (estimating errors, cost overruns/underruns for specific tasks) are systematically communicated back to the estimating team to improve the accuracy of future bids.74

Implementing these recommendations requires commitment and discipline but offers substantial rewards in terms of enhanced profitability, improved cash flow management, more competitive bidding, and overall business stability in the demanding residential or improving job costing practices:

10. Works Cited & Resources

Glossary of Key Terms and Concepts

(Definitions tailored for the residential construction/remodeling context)

  • Job Costing (Project Costing): The accounting process of tracking, allocating, and analyzing all costs (direct labor, materials, subcontractors, equipment, overhead) associated with a specific construction or remodeling project (job) to determine its profitability.1

  • Direct Costs: Expenses that can be directly traced and assigned to a specific residential project. Includes materials incorporated into the home, labor working on that specific site, payments to subcontractors for work on that job, job-specific equipment rental, and permit fees for that project.15

  • Indirect Costs (Overhead): Expenses necessary to operate the construction business or support job sites, but not attributable to a single specific project task. Must be allocated to jobs to determine true profitability.15

  • General & Administrative (G&A) Overhead: Indirect costs related to running the overall business, such as office rent, utilities, administrative salaries (owner, bookkeeper, estimator), general liability insurance, office supplies, marketing, vehicle costs (non-job allocated), software fees.12

  • Jobsite Overhead (Direct Overhead): Indirect costs incurred specifically for a particular job site but benefiting the project overall, not a single task. Examples include project manager/superintendent time allocated to the job, temporary site trailer, portable toilet rental, site utilities, job-specific insurance riders.3

  • Labor Burden (Fully Burdened Labor Rate): The total hourly cost of employing a field worker, calculated as the base wage plus all additional employer-paid costs, including payroll taxes (FICA, FUTA, SUTA), workers' compensation insurance, applicable general liability insurance, health insurance premiums, retirement contributions, paid time off (vacation, holiday, sick), and potentially other costs like small tools, uniforms, or training allowances.17 Essential for accurate labor costing.

  • Cost Codes: A structured list of alphanumeric codes used to categorize specific types of work or cost within a project (e.g., 06100-L for Framing Labor, 09680-M for Carpet Material). Often adapted from CSI MasterFormat or NAHB standards for residential work.14

  • Work-in-Progress (WIP): An accounting calculation and report showing the financial status of incomplete projects. It compares costs incurred and revenue earned to date against the total contract value and estimated costs, highlighting profitability and billing status (over/under billed).22

  • Percentage of Completion (POC): An accounting method used in construction to recognize revenue and profit on long-term contracts based on the proportion of work completed during a period, rather than waiting until the job is finished.25

  • Cost-to-Cost Method: A common method for calculating the percentage of completion for a WIP report: PercentComplete=CostsIncurredtoDate/EstimatedTotalCostsatCompletion.25

  • Estimate vs. Actuals Report: A core job cost report comparing the budgeted or estimated costs for each cost code/category against the actual costs incurred to date, highlighting variances.4

  • Variance: The difference between the estimated (budgeted) cost and the actual cost for a specific item, cost code, or the total project.4 Analysis of variances is key to cost control.

  • Change Order: A formal, written amendment to the construction contract documenting a change in scope, schedule, and/or cost, requiring agreement between the contractor and client.10 Crucial for managing scope creep and getting paid for extra work.

  • Markup: The percentage or amount added to the estimated cost of a job (or item) to arrive at the selling price. Calculated based on cost.32 Example: $100 cost + 25% markup = $125 price.

  • Margin (Gross Profit Margin): The percentage of the selling price that represents profit after deducting direct costs (Cost of Goods Sold). Calculated based on selling price.32 Example: ($125 price - $100 cost) / $125 price = 20% margin.

  • Allowance: A specific sum of money included in the contract estimate for a particular item whose exact specification is not yet determined by the client (e.g., $5,000 allowance for kitchen appliances). If the client's final selection costs more than the allowance, a change order is typically required.9

  • Contingency: An amount or percentage added to an estimate or budget to cover unforeseen costs or risks that may arise during the project. Its use and ownership (client vs. contractor) should be clearly defined in the contract.

  • Committed Costs: Costs that the contractor is legally obligated to pay but has not yet paid or recorded as an actual expense, such as materials ordered via a purchase order but not yet invoiced, or signed subcontractor agreements for future work.97 Important for accurate forecasting of cost-to-complete.

Works Cited

  1. Construction Accounting 101: A Basic Guide for Contractors - Foundation Software, accessed April 28, 2025, https://www.foundationsoft.com/learn/construction-accounting-101/

  2. Custom Furniture - FasterCapital, accessed April 28, 2025, https://fastercapital.com/keyword/custom-furniture.html

  3. www.rho.co, accessed April 28, 2025, https://www.rho.co/blog/guide-job-costing#:~:text=Direct%20overhead%20is%20the%20non,trackable%20to%20a%20specific%20project.

  4. A Guide to Job Costing Reports - Deltek, accessed April 28, 2025, https://www.deltek.com/en/construction/accounting/job-costing/report

  5. Understanding The Importance Of Accurate Job Costing ..., accessed April 28, 2025, https://fastercapital.com/topics/understanding-the-importance-of-accurate-job-costing.html

  6. Construction Accounting: The Complete Guide for Contractors - Fyle, accessed April 28, 2025, https://www.fylehq.com/blog/construction-accounting

  7. Profit Margins: Claiming Your Profit - Traditional Building, accessed April 28, 2025, https://www.traditionalbuilding.com/opinions/claiming-your-profit

  8. How To Increase Profits Using More Accurate Job Costing, accessed April 28, 2025, https://blog.unomaha.edu/sbdc-blog/how-to-increase-profits-using-more-accurate-job-costing

  9. Five Mistakes Remodelers Commonly Make When They Write ..., accessed April 28, 2025, https://www.jlconline.com/Remodeling/five-mistakes-remodelers-commonly-make-when-they-write-estimates_o

  10. Seven Deadly Construction Accounting Mistakes Kill Profit And Growth, accessed April 28, 2025, https://www.fasteasyaccounting.com/blog/seven-deadly-construction-accounting-mistakes-kill-profit-and-growth?utm_content=70618101&utm_medium=social&utm_source=twitter

  11. Remodeling's "Hidden" Costs - Change Orders - Imperial Kitchens and Baths, Inc. 708.485.0020, accessed April 28, 2025, https://imperialkitchensandbaths.com/blog/remodelings-hidden-costs-change-orders/

  12. Construction Overhead Costs: How to Calculate it - FreshBooks, accessed April 28, 2025, https://www.freshbooks.com/hub/accounting/how-to-calculate-overhead-for-construction-companies

  13. Construction Accounting 101: Principles and Best Practices - Buildern resources, accessed April 28, 2025, https://buildern.com/resources/blog/construction-accounting-guide/

  14. A Guide to Using Construction Cost Codes | Buildertrend, accessed April 28, 2025, https://buildertrend.com/blog/guide-to-construction-cost-codes/

  15. How to Allocate Overhead Costs in Construction: A Beginner's Guide, accessed April 28, 2025, https://www.constructioncostaccounting.com/post/allocate-overhead-costs

  16. The Ultimate Guide to Construction Accounting for Contractors, accessed April 28, 2025, https://crewcost.com/blog/construction-accounting-101-expert-guide-for-contractors/

  17. Direct vs Indirect Costs in Construction - Deltek, accessed April 28, 2025, https://www.deltek.com/en/construction/accounting/job-costing/direct-cost-vs-indirect-cost

  18. Guide to job costing - Rho, accessed April 28, 2025, https://www.rho.co/blog/guide-job-costing

  19. What Are Cost Codes in Construction? - A-Systems JobView, accessed April 28, 2025, https://www.a-systems.net/cost-codes.htm

  20. Construction Cost Codes - Everything You Need to Know - CrewCost, accessed April 28, 2025, https://crewcost.com/blog/everything-you-need-to-know-about-construction-cost-codes/

  21. Construction Cost Codes 101: Tips to Build Smarter, Not Harder, accessed April 28, 2025, https://buildern.com/resources/blog/construction-cost-codes/

  22. www.getvergo.com, accessed April 28, 2025, https://www.getvergo.com/define/work-in-progress-wip#:~:text=Work%2Din%2DProgress%20(WIP)%20in%20construction%20refers%20to,worked%20on%20by%20construction%20teams.

  23. What does Work-in-Progress (WIP) mean in Construction? - Vergo, accessed April 28, 2025, https://www.getvergo.com/define/work-in-progress-wip

  24. What are the Challenges Associated with WIP Reporting in ..., accessed April 28, 2025, https://accountingforeveryone.com/what-are-the-challenges-associated-with-work-in-progress-wip-reporting-for-construction-projects/

  25. The Impact of WIP Report on Construction Balance Sheets, accessed April 28, 2025, https://www.constructioncostaccounting.com/post/wip-report-balance-sheets

  26. How To Calculate Labor Burden: Complete 2025 Guide - Rippling, accessed April 28, 2025, https://www.rippling.com/blog/labor-burden

  27. What is labor burden? How to calculate your true payroll costs - Knowify, accessed April 28, 2025, https://knowify.com/resources/what-is-labor-burden/

  28. Construction Profit Tip #2: Know Your Fully-Burdened Labor Rate, accessed April 28, 2025, https://buildyournumbers.com/fully-burdened-labor-rate/

  29. How To Calculate Labor Burden - Workyard, accessed April 28, 2025, https://www.workyard.com/blog-articles/how-to-calculate-labor-burden

  30. Job Estimate Tip: Use Fully Burdened Labor Rates - Build Your Numbers, accessed April 28, 2025, https://buildyournumbers.com/more-accurate-job-estimates-include-fully-burdened-labor-costs/

  31. Exploring Construction Payroll Labor Burden - Payroll4Construction, accessed April 28, 2025, https://www.payroll4construction.com/exploring-construction-payroll-burden/

  32. Markup vs. Margin: What is the Difference? [+ Calculator] - Consero Global, accessed April 28, 2025, https://conseroglobal.com/resources/markup-vs-margin-what-is-the-difference/

  33. Construction Markup vs. Profit Margin: How to Calculate Each - LS Building Products, accessed April 28, 2025, https://ls-usa.com/blog/construction-markup-vs-profit-margin

  34. Markup vs. Margin: What's the difference? - Web.com, accessed April 28, 2025, https://www.web.com/blog/markup-vs-margin/

  35. Construction Markup vs Profit Margin: Calculating Each — and Choosing the Right Method, accessed April 28, 2025, https://www.procore.com/library/construction-markup-and-profit-margin

  36. Construction Markup vs Margin: Key Differences and The Importance of Each - MotionOps, accessed April 28, 2025, https://www.motionops.com/blog/construction-markup-vs-margin-guide

  37. Understanding Markup vs. Margin - Ressio Software, accessed April 28, 2025, https://www.ressiosoftware.com/insights/understanding-markup-vs-margin

  38. General Contractor Markup 101: Everything You Need to Know - Buildern, accessed April 28, 2025, https://buildern.com/resources/blog/general-contractor-markup/

  39. How to Calculate the Margin vs. Markup Formula: The Essential Guide for Businesses, accessed April 28, 2025, https://www.inflowinventory.com/blog/calculate-margin-vs-markup/

  40. Understanding the Difference Between Profit Margin vs Markup in Construction, accessed April 28, 2025, https://www.rib-software.com/en/blogs/margin-vs-markup-construction

  41. Markup Versus Profit Margin… Know the Difference to Improve your Construction Estimates - JobTread, accessed April 28, 2025, https://www.jobtread.com/blog/markup-versus-profit-margin

  42. management intentionally misstating the financial statements. AU-C 240.A75, Appendix A, lists the following - Checkpoint Learning, accessed April 28, 2025, https://checkpointlearning.com/Courses/FileDownload?courseIdHiddenField=11629&deliveryFormatIdHiddenField=5

  43. May 23, 2018 VIA ELECTRONIC AND U.S. MAIL Attention: Filing Center Public Utility Commission of Oregon P.O. Box 1088 Salem, Oreg, accessed April 28, 2025, https://edocs.puc.state.or.us/efdocs/HTB/ug344htb1777.pdf

  44. Full text of "Principles of accounting. Volume 2, Managerial accounting" - Internet Archive, accessed April 28, 2025, https://archive.org/stream/ManagerialAccounting_201906/ManagerialAccounting-OP_f5p2GUM_djvu.txt

  45. Construction Best Practices - Part 1 - 30A CPA, accessed April 28, 2025, https://www.30acpa.com/in-the-news/construction-best-practices-part-1

  46. Developing an advisory workflow to support construction clients - Tax Pro Center | Intuit, accessed April 28, 2025, https://accountants.intuit.com/taxprocenter/practice-management/developing-an-advisory-workflow-to-support-construction-clients/

  47. 6 Figures With 16 Clients? How to Build a SUPER PROFITABLE CPA Tax Accounting Bookkeeping & Payroll Firm - Feedbackwrench, accessed April 28, 2025, https://www.feedbackwrench.com/post/6-figures-with-16-clients-how-to-build-a-super-profitable-cpa-tax-accounting-bookkeeping-payroll-firm

  48. The Remodeler's Tax Blueprint: S-Corp vs. LLC for Iowa Contractors, accessed April 28, 2025, https://www.performancefinancialllc.com/blog-posts/the-remodelers-tax-blueprint-s-corp-vs-llc-for-iowa-contractors-save-15k

  49. How to calculate & improve overhead costs in construction - Buildertrend, accessed April 28, 2025, https://buildertrend.com/blog/construction-overhead/

  50. Builders' Profit Margins Improved in 2023 - Eye on Housing, accessed April 28, 2025, https://eyeonhousing.org/2025/03/builders-profit-margins-improved-in-2023/

  51. NAHB's New Study Provides Statistics and Data on Builder Financial Performance - Public, accessed April 28, 2025, https://ebs.publicnow.com/view/AA2C827F811C0C3277B091469B546395C2201ECC

  52. NAHB: How Much Does It Cost Remodelers to Do Business? - JLC Online, accessed April 28, 2025, https://www.jlconline.com/business/nahb-how-much-does-it-cost-remodelers-to-do-business_c

  53. How Much Does it Cost Remodelers to Do Business? | NAHB, accessed April 28, 2025, https://www.nahb.org/blog/2020/05/How-Much-Does-it-Cost-Remodelers-to-Do-Business

  54. Remodelers' Profits Remain Flat | NAHB, accessed April 28, 2025, https://www.nahb.org/blog/2020/06/remodelers-profits-remain-flat/

  55. Construction 1: Management Finance Measurement 9781350362536, 9780333649503 - DOKUMEN.PUB, accessed April 28, 2025, https://dokumen.pub/construction-1-management-finance-measurement-9781350362536-9780333649503.html

  56. Best practices in the remodeling industry - JLC Online, accessed April 28, 2025, https://www.jlconline.com/business/best-practices-in-the-remodeling-industry

  57. Fast-tracking of construction projects becoming the norm - ConstructConnect Canada, accessed April 28, 2025, https://canada.constructconnect.com/dcn/news/others/2005/03/fast-tracking-of-construction-projects-becoming-the-norm-dcn015276w

  58. Construction Overhead Allocation Methods Explained - Foundation Software, accessed April 28, 2025, https://www.foundationsoft.com/learn/overhead-allocation-methods/

  59. Overhead Allocation Models - Builder-Resources, accessed April 28, 2025, https://www.builder-resources.com/Overhead-Allocation-Models.html

  60. How to Track & Control Material Costs in Construction with ... - Lumber, accessed April 28, 2025, https://services.lumberfi.com/post/track-and-control-material-costs-in-construction-with-bookkeeping-data

  61. Strategies For Managing Material Costs In Construction Projects ..., accessed April 28, 2025, https://fastercapital.com/topics/strategies-for-managing-material-costs-in-construction-projects.html

  62. Direct Labor vs. Indirect Labor: Understanding the Differences in ..., accessed April 28, 2025, https://www.redhammer.io/blog/direct-labor-vs-indirect-labor-understanding-the-differences-in-construction-projects

  63. Construction Cost Codes - Definition, Industry Standards, Example, accessed April 28, 2025, https://constructioncoverage.com/glossary/cost-codes

  64. Cracking the Code: Understanding Cost Codes in Construction for Efficient Project Management - CM Fusion, accessed April 28, 2025, https://cmfusion.com/blog/construction-cost-codes

  65. Examples of Cost Codes for Contractors - YouTube, accessed April 28, 2025, https://www.youtube.com/watch?v=XZNktvcLKJ0

  66. Construction Job Costing - Viewpoint, accessed April 28, 2025, https://www.viewpoint.com/resource-library/education-training-videos/construction-job-costing

  67. 6 Reasons Why Your Job Costing Is Wrong - Tradies Accountant, accessed April 28, 2025, https://www.tradiesaccountant.com/blog/6-reasons-why-your-job-costing-is-wrong2

  68. AccountingExamsMastery.ca/content/introduction-to-managerial-accounting/3/3/index.md at ... - GitHub, accessed April 28, 2025, https://github.com/MasteryEducation/AccountingExamsMastery.ca/blob/main/content/introduction-to-managerial-accounting/3/3/index.md

  69. 7 Best Construction Job Costing Software Solutions for 2024, accessed April 28, 2025, https://www.workyard.com/compare/job-costing-software

  70. Job Costing Software | Book a Demo Today | Joblogic®, accessed April 28, 2025, https://www.joblogic.com/en-us/features/job-costing-software/

  71. How to Handle Bookkeeping for a Business with Subcontractors - Accounting for Everyone, accessed April 28, 2025, https://accountingforeveryone.com/how-to-handle-bookkeeping-for-a-business-with-subcontractors/

  72. Reduce Material Waste With Construction Management Software, accessed April 28, 2025, https://esub.com/blog/reduce-material-waste/

  73. The Ultimate Guide to Construction Job Costing - Foundation, accessed April 28, 2025, https://www.foundationsoft.com/learn/the-ultimate-guide-to-construction-job-costing/

  74. WIP Reports vs. Job Cost Reports: What's the Difference?, accessed April 28, 2025, https://www.constructioncostaccounting.com/post/wip-job-cost-report

  75. Project Management and Accounting concepts in Dynamics AX2012 R3 | PPT - SlideShare, accessed April 28, 2025, https://www.slideshare.net/slideshow/project-management-and-accounting-concepts-in-dynamics-ax2012-r3/72693701

  76. STATE O& RES #ENT A CONSTRUCT ON N#USTR" - AWS, accessed April 28, 2025, https://publicsharedfiles.s3.ap-southeast-2.amazonaws.com/APBSORCIReport2024.pdf

  77. Mastering construction job costing: A contractors guide - Knowify, accessed April 28, 2025, https://knowify.com/resources/construction-job-costing-contractors-guide/

  78. What Is Labor Burden Rate? How To Calculate Your True Payroll Costs - Velocity Global, accessed April 28, 2025, https://velocityglobal.com/resources/blog/what-is-labor-burden/

  79. How do construction companies manage labor burden? - Bridgit Bench, accessed April 28, 2025, https://gobridgit.com/blog/construction-labor-burden/

  80. Pitfalls to Avoid When Estimating Labor | JLC Online, accessed April 28, 2025, https://www.jlconline.com/Remodeling/pitfalls-to-avoid-when-estimating-labor_o

  81. Construction Cost Codes: Best Practices and Industry Insights | Procore, accessed April 28, 2025, https://www.procore.com/library/construction-cost-codes

  82. Debunking the Top Myths in the Remodeling Business | NAHB, accessed April 28, 2025, https://www.nahb.org/blog/2023/08/remodeling-myths-part-1

  83. Job Cost Sheet Guide: Track Costs & Boost Profit Easily - Field Promax, accessed April 28, 2025, https://www.fieldpromax.com/blog/what-is-a-job-cost-sheet?trk=public_post_comment-text

  84. Job Cost Sheet Guide: Track Costs & Boost Profit Easily - Field Promax, accessed April 28, 2025, https://www.fieldpromax.com/blog/what-is-a-job-cost-sheet/

  85. Job Cost Sheet Guide: Track Costs & Boost Profit Easily - Field Promax, accessed April 28, 2025, https://www.fieldpromax.com/blog/what-is-a-job-cost-sheet

  86. How to Add Job Costs in Sage 100 - Followup CRM, accessed April 28, 2025, https://www.followupcrm.com/blog/how-to-add-job-costs-in-sage-100

  87. What is DCAA Compliance? | GovCon | BOOST LLC, accessed April 28, 2025, https://boostllc.net/what-is-dcaa/

  88. Peacksoft EPC manages Projects, Estimation, Planning, Delivery and Execution, accessed April 28, 2025, https://www.peacksoft.com/epc

  89. How to Reduce Construction Cost Using Construction Operations Management Software, accessed April 28, 2025, https://alignops.com/blog/how-to-reduce-construction-cost-using-coms

  90. 1. Meeting Call to Order - Nevada Board of Professional Engineers and Land Surveyors, accessed April 28, 2025, https://nvbpels.org/wp-content/uploads/2022/10/202210.pdf

  91. Reading the Fine Print: Key Clauses in Builder Contracts That, accessed April 28, 2025, https://hollingtonlawfirm.com/articles/reading-the-fine-print-key-clauses-in-builder-contracts/

  92. 7 Best Construction Accounting Software for Project Cost Control - - Planyard, accessed April 28, 2025, https://planyard.com/blog/7-best-construction-accounting-software-for-project-cost-control

  93. Role of Job Cost reports in Construction - The Vertex Companies, LLC, accessed April 28, 2025, https://vertexeng.com/insights/job-cost-reports-powerful-construction-management-tool/

  94. What Is Overhead Allocation? (Indirect Costs and Allocation Methods), accessed April 28, 2025, https://www.foundationsoft.com/learn/what-is-overhead-allocation/

  95. Indirect Contract Costs - Cooper, Travis & Company, PLC, accessed April 28, 2025, https://www.coopertravis.com/2025/01/09/indirect-contract-costs/

  96. How Estimate vs. Actual Reports impact profitability, accessed April 28, 2025, https://buildyournumbers.com/just-doesnt-make-sense/

  97. Job Cost Reporting and the Actual vs. Committed Dashboard - Onware, accessed April 28, 2025, https://onware.com/actual-vs-committed-job-cost-reporting/

  98. 3 of the Top Construction Accounting Software Options For Your Business, accessed April 28, 2025, https://crscpa.com/blog/3-of-the-top-construction-accounting-software-options-for-your-business/

  99. How Technology Enhances Job Costing Accuracy for Businesses, accessed April 28, 2025, https://www.hourtimesheet.com/job-costing-accuracy/

  100. Causes of material delays in capital projects in Saudi Arabia | Request PDF - ResearchGate, accessed April 28, 2025, https://www.researchgate.net/publication/353439158_Causes_of_material_delays_in_capital_projects_in_Saudi_Arabia

  101. Pricing Mastery: 5 Things You Must Know, 7 Mistakes to Avoid & 4 ..., accessed April 28, 2025, https://www.buildersshow.com/Search/EducationSession.aspx?id=2809597

  102. Evaluation of Risk Factors Affecting Cost Performance of Construction Projects in Jalingo, Taraba State - ResearchGate, accessed April 28, 2025, https://www.researchgate.net/publication/316818760_Evaluation_of_Risk_Factors_Affecting_Cost_Performance_of_Construction_Projects_in_Jalingo_Taraba_State

  103. Contractor Success Forum - Buzzsprout, accessed April 28, 2025, https://feeds.buzzsprout.com/1748499.rss

  104. The Definitive Construction Accounting Glossary A-Z - Foundation Software, accessed April 28, 2025, https://www.foundationsoft.com/learn/construction-accounting-glossary/

  105. Top Integration Use Cases & Benefits Between CRM & Accounting + ERP - Gridlex, accessed April 28, 2025, https://gridlex.com/r/crm-accounting-erp

  106. SolarPro 7.4 | PDF | Ac Power | Metrology - Scribd, accessed April 28, 2025, https://www.scribd.com/document/538664262/SolarPro-7-4

  107. Method to know how to quantify a construction site - Alobees, accessed April 28, 2025, https://www.alobees.com/en/conseils/quantifying-construction-site

  108. The Essentials of Quality Construction and What to Avoid | Archadeck of Akron, accessed April 28, 2025, https://www.archadeck.com/akron/resources/blog/2020/april/the-essentials-of-quality-construction-and-what-/

  109. Interior Finish Out • Home Training Facility - J & A General Contracting, accessed April 28, 2025, https://jandageneralcontractinginc.com/projects/usrc-bluebonnet-home-training-facility/

  110. [Free] Job Costing Template for Construction - Step-by-Step Guide, accessed April 28, 2025, https://crewcost.com/blog/free-job-costing-template-construction

  111. Project Budget Estimate and Cost Management Excel Spreadsheet Template, Simple BOQ Analysis, Track All Project Budget Costs, Forecast Costs. - Etsy, accessed April 28, 2025, https://www.etsy.com/listing/1563925356/project-budget-estimate-and-cost

  112. My Business On Purpose, accessed April 28, 2025, https://mybusinessonpurpose.libsyn.com/2022

  113. Custom Microsoft Excel Spreadsheet Design - Joshua Wilson Consulting, accessed April 28, 2025, https://joshuawilsonconsulting.com/excel-expert-google-sheets/custom-spreadsheet-design/

  114. Financial and Non-financial Information Transfer and Communication within Small and Medium Enterprises - University of Canterbury, accessed April 28, 2025, https://ir.canterbury.ac.nz/bitstreams/6183ded7-4b86-476f-9247-9ba32ed764a5/download

  115. Transmission Repair's Content - AutoShopOwner, accessed April 28, 2025, https://www.autoshopowner.com/profile/4953-transmission-repair/content/?type=forums_topic_post&change_section=1

  116. 9 Benefits of Job Costing Systems for Construction | Deltek, accessed April 28, 2025, https://www.deltek.com/en/construction/accounting/job-costing/benefits

  117. The Complete Guide to Construction Job Costing - IEC Insights, accessed April 28, 2025, https://insights.ieci.org/the-complete-guide-to-construction-job-costing/

  118. Utah Construction Accounting Software, accessed April 28, 2025, https://www.foundationsoft.com/utah-construction-accounting-software/

  119. Wyoming Construction Accounting Software, accessed April 28, 2025, https://www.foundationsoft.com/wyoming-construction-accounting-software/

  120. Job Costing Software Explained - Deltek, accessed April 28, 2025, https://www.deltek.com/en/construction/accounting/job-costing/software

  121. Top Construction Accounting Software in 2025 - Slashdot, accessed April 28, 2025, https://slashdot.org/software/construction-accounting/?page=2

  122. Best Job Costing Software - March 2025 Reviews & Comparison, accessed April 28, 2025, https://sourceforge.net/software/job-costing/

  123. Best Open Source and Free Job Costing Software in 2025, accessed April 28, 2025, https://www.softwaresuggest.com/job-costing-software/free-open-source-softwares

  124. Top Construction Accounting Software for Small Business in 2025 - Slashdot, accessed April 28, 2025, https://slashdot.org/software/construction-accounting/f-small-business/?page=2

  125. Bizprac Reviews in 2025 - SourceForge, accessed April 28, 2025, https://sourceforge.net/software/product/Bizprac/

  126. Bookkeeping tips for construction companies to keep their books accurate. - Performance Financial, accessed April 28, 2025, https://www.performancefinancialllc.com/blog-posts/top-bookkeeping-tips-for-building-contractors

  127. Best 6 Construction Job Costing Software and Tools (2025 Guide ..., accessed April 28, 2025, https://archdesk.com/blog/best-construction-job-costing-software-tools

  128. What does Job Cost Report mean in Construction? - Vergo, accessed April 28, 2025, https://www.getvergo.com/define/job-cost-report

  129. How Contractor Profits Are Actually Generated - The Aspire Institute, accessed April 28, 2025, https://www.theaspireinstitute.com/uploads/resources/Aspire-ContractorProfit.pdf

  130. Level-Up-31-Project-RFP-PD2401-Volume-2-Walsh-Construction.pdf - IN.gov, accessed April 28, 2025, https://www.in.gov/indot/doing-business-with-indot/files/Level-Up-31-Project-RFP-PD2401-Volume-2-Walsh-Construction.pdf

  131. Cost Allocation In Different Industries - FasterCapital, accessed April 28, 2025, https://fastercapital.com/topics/cost-allocation-in-different-industries.html

  132. Cost Accounting - National Academic Digital Library of Ethiopia, accessed April 28, 2025, http://ndl.ethernet.edu.et/bitstream/123456789/18508/2/199.pdf.pdf?vvj1Jf3fpPpN=EBdBziTjb

  133. Build Better Remodeling Business Practices at IBS 2025 | NAHB, accessed April 28, 2025, https://www.nahb.org/blog/2025/01/build-better-remodeling-business-practices-at-ibs-2025

  134. (PDF) A Synergetic Effect of the Integration of Lean, Sustainable Construction Practices and Alliance Contract on Operation Performance in the Indian Construction Industry - ResearchGate, accessed April 28, 2025, https://www.researchgate.net/publication/378443536_A_Synergetic_Effect_of_the_Integration_of_Lean_Sustainable_Construction_Practices_and_Alliance_Contract_on_Operation_Performance_in_the_Indian_Construction_Industry

(Conceptual basis derived from GO First Consulting source materials via NotebookLM synthesis, covering topics including the 5% Net Profit Trap, $1-5M Remodeler Challenges, Job Costing Best Practices, Construction Financial Management, and relevant Technology.)

Reply

or to participate.