Job Costing Checklist
Job Costing Checklist
Quick Summary
A job costing checklist helps contractors track the actual cost of completing a project and compare it against the original estimate. Consistent job costing makes it easier to identify profitable work, control expenses, and improve future bids. This checklist is useful for subcontractors, project managers, estimators, foremen, and office staff responsible for project finances.
When to Use This Checklist
- Before starting a new project.
- When setting up job cost tracking.
- Throughout project execution.
- When reviewing labor and material spending.
- Before submitting progress billings.
- During project closeout reviews.
- When analyzing project profitability.
Before You Start
- Review the approved estimate and project budget.
- Assign a unique job number or project code.
- Establish labor, material, equipment, and subcontract cost categories.
- Set up time tracking procedures for field crews.
- Identify who will approve and review project costs.
- Create a process for tracking change orders.
- Confirm vendor and supplier accounts are linked to the project.
Safety Checks
- Track safety-related project expenses separately when needed.
- Document costs associated with required safety equipment.
- Record safety-related change order costs.
- Review incident-related expenses if they occur.
- Verify safety costs are assigned to the correct project.
Tools, Equipment, and Materials
- Approved estimate and project budget.
- Timecards or labor tracking reports.
- Material purchase records.
- Equipment usage logs.
- Subcontractor invoices.
- Change order documentation.
- Job costing reports or accounting records.
Job Costing Checklist
- Create the project budget using approved estimate values.
- Assign cost codes to major work activities.
- Track labor hours daily by employee and task.
- Record labor burden costs if applicable.
- Track all material purchases against the project.
- Verify delivery tickets are assigned to the correct job.
- Track equipment usage, rentals, and fuel costs.
- Record subcontractor costs and invoices.
- Document approved change orders and related costs.
- Review actual costs against budget regularly.
- Investigate cost overruns and unusual expenses.
- Update project cost forecasts when scope changes.
- Review project profitability throughout the job.
- Calculate final job costs upon completion.
- Compare final costs to the original estimate.
- Document lessons learned for future estimating.
Documentation Needed
- Original estimate and budget reports.
- Employee time records.
- Material invoices and delivery tickets.
- Equipment usage and rental records.
- Subcontractor agreements and invoices.
- Approved change orders.
- Final job cost and profitability reports.
Common Mistakes to Avoid
- Failing to track labor hours accurately.
- Charging expenses to the wrong project.
- Ignoring small purchases that add up over time.
- Not documenting change order costs.
- Waiting until project completion to review costs.
- Failing to compare actual costs against estimates.
End-of-Day / Final Review
- All project costs have been recorded.
- Cost reports have been reviewed for accuracy.
- Outstanding invoices and expenses have been entered.
- Budget variances have been identified and explained.
- Final profitability has been calculated.
- Project cost records have been filed and archived.
Checklist Completion
Project / Job Name
Jobsite / Location
Completed By
Role / Title
Completed Date
Completed Time
Signature
Reviewed / Approved By, if needed
Notes / Follow-Up Items
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