A Irvine subcontractor lost $2M in bonding capacity in 48 hours. Their backlog was overstated by just 20% and their surety discovered it during routine review. Accurate backlog reporting isn't optional anymore.  It's the difference between landing that $5M project and watching your competitor take it because they had the bonding capacity and you didn't. This guide shows you exactly how to calculate, report, and manage your construction backlog the way banks and sureties deman

Overbilling in construction creates serious financial challenges that threaten your business survival. When you bill 70% on a job that's only 50% complete, you're not just making an accounting error, you're setting up cash shortages, damaging client relationships, and reducing your bonding capacity. Here's what's at stake:  Sureties scrutinize overbilling as a red flag for instability. Clients lose trust and may withhold payments. Your cash flow suffers later when you can't b

Your equipment is bleeding money and your WIP reports don't show it. That excavator charging $150/hour to jobs while sitting idle 40% of the year? It's creating phantom profits that vanish when depreciation, financing, and maintenance hit your P&L. Meanwhile, you're bidding the next job based on false numbers, wondering why "profitable" projects keep losing money at year-end. Here's the truth: inaccurate equipment cost tracking distorts every job costing decision you make. It

Your QuickBooks or Sage system handles the basics bills, payroll, banking. But here's the problem: checking your general ledger doesn't tell you the real financial health of your active projects. It won't reveal profit fade creeping into Project Aspen, the cash flow risk hiding in your over-billing position, or the cost overrun building quietly until month-end closes. For construction firms pushing past $5M or $10M in revenue, reactive accounting isn't just outdated, it's exp

You're tracking every cost. Every invoice. Every hour worked. But when someone asks, "Are we making money on this job?" you still can't give a confident answer. The problem isn't your accounting software. QuickBooks and Sage capture everything. The problem is those transactions sit there like puzzle pieces scattered data that never becomes a clear picture of profitability. Most contractors discover they've lost money on a job weeks after it's too late to fix anything. That en

You just wrapped up a profitable quarter. Your jobs are on schedule. Your clients are happy. Then your surety agent calls with news that makes your stomach drop: "We're reducing your bonding capacity by 40%." You pull up your WIP report, scanning the numbers. Revenue looks solid. Costs are under control. Profit margins are healthy. So what's the problem? Here's what most contractors don't realize: your surety isn't just reading your WIP report, they're interrogating it.  And

A contractor called us last month about a confusing problem. His WIP report showed his commercial renovation at 22% profit $74,000 in the green. But he'd maxed out his credit line and couldn't pay his concrete supplier. We found $68,000 in July costs that wouldn't hit his books until September. His plumber had worked three weeks but hadn't invoiced. Materials sat in "uninvoiced receipts" because his supplier batched invoices monthly. His WIP showed profit that didn't exist.

If your bonding agent has recently requested updated Work-in-Progress (WIP) reports, you may be feeling the pressure. It’s understandable to be concerned about how these reports could impact your bonding capacity, especially if you’re unsure about exactly what the underwriters are looking for. For small and mid-sized contractors (SMEs), your bonding capacity  is essential. It's the difference between competing for multi-million dollar projects or staying in the smaller league

Accurately tracking Work in Progress (WIP)  is crucial for financial transparency and effective project management on the construction income statement. WIP reflects the value of projects currently underway, including costs incurred and revenue earned to date. Properly managing WIP is the only way to accurately assess profitability, predict cash flow, and make informed decisions on bids and resource allocation. Construction projects often span months or years. This requires c

Project overruns are a constant headache for small contractors, slashing profits and straining client relationships. Industry data...

In the dynamic world of construction, managing Work In Progress (WIP) effectively is crucial for ensuring project profitability, timely...

Automate WIP Reports with AI to save time, cut errors, and boost profits. Discover smart tools and how CCA helps streamline reporting for your business.