How Excel Defeats the Purpose of WIP Reports
The purpose of the WIP report is to monitor and manage billing and cash flow as well as warn you when a job is heading over budget. To prevent project managers from being caught off guard by cost overruns, the WIP must be accurate and up to date with real-time data. As such, using Excel…
Reducing On-the-job Injuries with Modern Tools
Much progress has been made in the field of ergonomic design to help office workers reduce fatigue and injuries. Chairs, computer monitors, keyboards, mice, and even telephones have been redesigned to prevent carpal tunnel syndrome and vision problems. But what about the construction industry? According to the Centers for Disease Control and Prevention National Institute…
7 Key Metrics of a WIP Series: Completed Billings to Date
A work in progress (WIP) statement records the information necessary for the percentage of completion calculations and provides crucial information about the total value and progress of work completed. In most cases, revenue is considered earned after a service is complete or product ownership is transferred. If revenue recognition, however, is delayed until the end…
7 Key Metrics of a WIP Series: Total Estimated Revenue
Percentage-of-completion accounting and performance obligation revenue recognition are 2 construction industry tools for calculating total estimated revenue. In the construction industry, time is money. As professionals, contractors provide clients with key deliverables over a specified timeline, basing costs on the number of resources necessary to complete the job. Therefore, determining when you’ve ‘earned your pay’…