WIP reporting that bankers and sureties actually trust.
A work-in-progress schedule is the single most important report a commercial or spec contractor can build. Here's the format, the columns, and how to read the warning signs.
What percentage-of-completion means
Percentage-of-completion accounting recognizes revenue as the job is built — not when the cash comes in. You calculate "% complete" based on costs incurred vs. estimated total cost, apply that percentage to the contract value, and that's your earned revenue.
The gap between earned revenue and billed revenue is what creates over- and under-billings — and that's the number your banker and surety care about most.
The 8 columns every WIP schedule needs.
Contract amount
Total signed contract value including approved change orders.
Estimated total cost
Your latest best estimate of what the job will actually cost to complete. Update monthly.
Estimated gross profit
Contract amount minus estimated total cost. The margin you're betting on.
Cost to date
Actual costs incurred on the job through today, across all cost types.
% complete
Cost to date divided by estimated total cost. The percentage-of-completion method.
Earned revenue
Contract amount × % complete. What you've 'earned' regardless of what you've billed.
Billed to date
What you've actually invoiced the owner through today.
Over/under-billing
Earned minus billed. Positive = under-billed (you've done more work than you've billed). Negative = over-billed (you've billed ahead of the work).
Four warning signals your WIP is telling you.
Chronic over-billing
You bill faster than you work. Good for cash — bad for the final month of the job when billings run out before the work does. Lenders and sureties flag this.
Chronic under-billing
You do work faster than you bill. You're financing the owner. Fix the billing cadence, not the work.
Margin fade
Estimated gross profit on the job drops each month. Something is wrong — missed change orders, cost overrun, or bad original bid. Catch it the month it starts, not at year-end.
Cost creep past 100%
Cost to date exceeds estimated total cost. You blew the bid. Re-estimate honestly — don't hold it at 99%.
Banks and sureties read WIP schedules first.
When you walk into a bank for a construction loan or a surety for a bigger bond line, the first thing they ask for is your WIP schedule. Not your P&L. Not your tax return. The WIP.
Because the WIP tells them the truth: are you running clean jobs, billing at a healthy pace, with margins that hold? Or are you over-billing to float cash and covering up underwater work? A clean WIP gets you better terms. A messy one shuts the door.
We build WIP schedules every month for BuilderCFO clients in the exact format their bank and surety already trust. It's often the single fastest thing we can do to unlock growth.
You'll meet with
Cory Salisbury
Want a bank-ready WIP schedule?
Book a free 30-minute call. Bring your most recent WIP if you have one — we'll tell you exactly where it breaks.
What we'll cover
- A 10-minute look at where your numbers are today.
- 3 specific profit leaks I'd chase first for a business your size.
- Whether we're a fit — honest yes or no, no pressure either way.
Pick a date
Weekdays, 11:00 AM – 2:00 PM MT
“Recovered $34,000 in forgotten retainage in Q1.” — Rachel K. · specialty trade, 8 GCs