M06.01
How a floor job makes money
Estimate vs. cost vs. billings vs. cash. Four different numbers.
- Explain estimate, cost, billed, and collected
- Spot leaking margin while the job is still alive
- Code every dollar to a job
The four numbers
Estimate: what we thought it would take. Cost: labor, material, equipment, subs, dumps, travel — actual. Billed: what we have invoiced (including extras). Collected: what hit the bank after retainage and short-pays. A job can be 'profitable' on paper and still starve the company if we billed late or lost retainage. Your dashboards should show all four.
Common leaks
| Leak | Admin tell |
|---|---|
| Unapproved extras | Daily report mentions extra grind; no PCO |
| Wrong job coding | Receipts in 'misc' or the owner's personal card |
| Re-work | Second trip for the same area with no change document |
| Idle time | Dailies show waiting on other trades, never recovered |
| Material waste / wrong color | Rush order, no receiving photo, leftover unlogged |
Takeaways
- Uncoded cost is a lie about profit.
- Percent complete is not a feeling.
- Labor overtime and extra grind are the usual leaks.
SOPSOP Section 4 — Administrative StaffSOP Section 2.16 — Weekly PM KPI Dashboard