Job Profitability Review Checklist
Job Profitability Review Checklist
Quick Summary
A job profitability review checklist helps contractors understand whether a project is making money, breaking even, or losing money. Reviewing profitability throughout the project allows teams to spot issues early, improve future estimates, and make better business decisions. This checklist is useful for owners, project managers, estimators, controllers, and office managers.
When to Use This Checklist
- During monthly financial reviews.
- At major project milestones.
- Before submitting progress billings.
- When costs begin exceeding budget expectations.
- Prior to project closeout.
- After completing large change orders.
- As part of post-project performance reviews.
Before You Start
- Gather the original estimate and approved budget.
- Review current job cost reports.
- Collect billing and payment records.
- Verify all labor, material, and equipment costs have been entered.
- Review approved and pending change orders.
- Identify outstanding commitments and unpaid invoices.
- Confirm project completion percentage.
Safety Checks
- Review costs associated with incidents or injuries.
- Track rework costs related to safety issues.
- Review equipment damage and repair expenses.
- Identify downtime caused by safety-related events.
- Review recurring safety-related cost impacts.
- Evaluate whether corrective actions reduced future costs.
Tools, Equipment, and Materials
- Original estimate and budget reports.
- Job cost reports.
- Billing and accounts receivable records.
- Labor productivity reports.
- Equipment and fuel cost records.
- Change order logs.
- Vendor and subcontractor invoices.
Job Profitability Review Checklist
- Review total contract value and approved change orders.
- Verify project revenue billed to date.
- Review payments received and outstanding balances.
- Compare actual labor costs against estimated labor budgets.
- Evaluate labor productivity and crew efficiency.
- Compare material costs against estimated material budgets.
- Review equipment, fuel, and rental expenses.
- Review subcontractor costs and commitments.
- Identify budget categories that are over or under budget.
- Review pending costs that have not yet been invoiced.
- Evaluate the financial impact of delays or rework.
- Calculate current gross profit and profit margin.
- Forecast final project profitability based on current trends.
- Identify corrective actions needed to improve financial performance.
- Document lessons learned for future estimating and project planning.
Documentation Needed
- Current profitability report.
- Job cost reports.
- Billing and payment records.
- Labor and productivity reports.
- Change order documentation.
- Vendor and subcontractor invoices.
- Profitability review notes and action items.
Common Mistakes to Avoid
- Reviewing profitability only after the project is complete.
- Ignoring pending costs that have not yet been posted.
- Failing to include approved change orders in profitability calculations.
- Overlooking labor productivity trends.
- Using outdated job cost information.
- Failing to document lessons learned for future projects.
End-of-Day / Final Review
- All project costs and revenues have been reviewed.
- Current and projected profit margins have been calculated.
- Budget variances have been identified and documented.
- Corrective action items have been assigned.
- Management has reviewed significant profitability concerns.
- Review records and lessons learned have been saved.
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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