WIP schedules for home builders
Know which houses you have billed ahead of the work, and which ones you are financing yourself.
Short answer: A WIP (work in progress) schedule lists every open house with its contract price, estimated total cost, cost to date, percent complete, revenue earned and amount billed. The difference between billed and earned shows whether each house is over billed (cash collected ahead of work) or under billed (work done but not yet billed).
Why it matters for a builder
Over billing feels good because the cash is in the bank, but that cash belongs to work you have not done yet. If it gets spent on another house, the shortfall shows up at the end of the job. Under billing means you are funding construction out of your own pocket. Lenders and bonding companies often ask for a WIP schedule for the same reason.
What is included
- Monthly WIP schedule for every open contract home
- Percent complete based on cost to date vs estimated total cost
- Over and under billing by house and in total
- Notes on houses where the margin estimate moved
- A version formatted for your lender or bank when asked
Which plan includes it
The monthly WIP schedule is part of Builder Controller ($2,900 a month, 6 to 10 active homes), with a 13-week cash forecast. See pricing and a sample WIP schedule.
Common questions
Do spec homes go on the WIP schedule?
Spec homes have no contract price, so they are usually tracked as inventory at cost instead. We report them on their own schedule.
Is the WIP schedule the same as my tax method?
Not always. How you report for tax is a decision for your CPA. The WIP schedule is a management and lender report.
Can I get a WIP schedule on Builder Books?
It is included in Builder Controller. If you need one on Builder Books, ask during the Checkup and we will quote it.
Related
By John Mos, Founder. Updated . We do not give tax or legal advice. Please ask your CPA or attorney.
See where your margin goes, house by house.
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