Construction WIP Schedules and Margin Fade
A WIP schedule is a report that shows, for every open job at once, how much of the work
you have actually earned versus how much you have billed — and what margin each job is
now forecast to finish at. Percent complete is calculated cost-to-cost: cost to date
divided by cost to date plus estimated cost to complete. Multiply that percentage by the
contract value and you get earned revenue. Compare earned revenue to what you have
billed and you get your billing position. Compare the margin you now forecast to the
margin you bid and you get margin fade — the number that tells you a job is losing money
while there is still time to do something about it.
Run your open jobs through it
Enter each open job: contract value including approved change orders, original budgeted cost, cost to date, estimated cost to complete, and billed to date. The tool calculates percent complete, projected margin, fade against your bid, and your billing position on every job, then gives you a read on the portfolio. Nothing is uploaded or stored — the
numbers stay in your browser.