- Compare original estimates with actual and projected costs
- Assess profitability and progress at any stage of a project
- Plan billing schedules or analyze cash flow
- Identify cost overruns or underbilling
- Summary These metrics give a 360° view of your project’s financial health—from cost tracking and revenue to progress and cash flow. Use them to make informed decisions, identify risks early, and stay on top of both your budget and profitability throughout the project lifecycle.
- Evaluate cost-efficiency by area or labor
Contract Price
What it is: The original agreed project price based on estimates.
Formula: Sum of all estimate items (including taxes, overheads, and insurance).
Purpose: Establishes the project's initial revenue baseline.
Approved Change Orders
What it is: Cost of scope modifications approved by the client.
Formula: Sum of all approved change order items (including tax).
Purpose: Tracks changes that affect the contract and updates overall project value.
Revised Contract Price
What it is: Updated project value after adding change orders to the original contract.
Formula: Contract Price + Approved Change Orders
Purpose: Reflects the current total revenue expectation.
Contract Costs
What it is: Estimated base costs (without markup) to complete the original contract.
Formula: Estimate Item Value ÷ (1 + Markup %)
Purpose: Establishes baseline for expected project expenses.
Total Project Costs
What it is: Combined estimated costs for original scope and change orders.
Formula: Contract Costs + Change Order Costs
Purpose: Shows total estimated expenditure for the project.
Actual Costs
What it is: Real-time cost incurred to date.
Components: Paid Bills + Approved Time Logs + Allowance Costs
Purpose: Tracks actual spending to compare with projected/budgeted costs.
Gross Profit
What it is: Expected profit before indirect expenses.
Formula: Revised Contract Price - Total Project Costs
Purpose: Forecasts potential profitability.
Gross Margin
What it is: Gross profit as a percentage of revenue.
Formula: (Gross Profit ÷ Revised Contract Price) × 100
Purpose: Measures profitability ratio.
Actual Gross Profit
What it is: Realized profit to date based on invoices and actual costs.
Formula: Invoiced Amount - Actual Costs
Purpose: Measures current profitability.
Actual Gross Margin
What it is: Actual margin on billed revenue.
Formula: (Actual Gross Profit ÷ Invoiced Amount) × 100
Purpose: Tracks margin performance against projections.
Completion Percentage
What it is: Project progress based on cost consumption.
Formula: (Actual Costs ÷ Total Project Costs) × 100
Purpose: Assesses how much of the project is completed.
Earned Revenue
What it is: Revenue recognized based on completion.
Formula: Completion % × Revised Contract Price
Purpose: Aligns revenue recognition with progress.
Work-in-Progress (WIP)
What it is: Revenue earned vs revenue billed.
Formula: Earned Revenue - Invoiced Amount
Purpose: Detects underbilling (positive) or overbilling (negative).
WIP AA (Actual vs Allocated)
What it is: Actual costs compared to costs proportionate to invoicing.
Formula: Actual Costs - (Total Project Costs × Invoiced %)
Purpose: Reveals whether costs are aligned with revenue recognition.
Invoiced Amount
What it is: Total client billing (paid + unpaid).
Formula: Sum of all client invoices
Purpose: Tracks billing progress.
Invoiced Percentage
What it is: Proportion of total contract billed.
Formula: (Invoiced Amount ÷ Revised Contract Price) × 100
Purpose: Measures how much revenue has been billed.
Paid Invoices
What it is: Revenue collected from the client.
Formula: Sum of all received payments
Purpose: Assesses cash flow and receivables.
Paid Invoices Percentage
What it is: Share of the project value collected.
Formula: (Paid Amount ÷ Revised Contract Price) × 100
Purpose: Measures collection efficiency.
Remaining Balance
What it is: Unpaid part of the contract.
Formula: Revised Contract Price - Paid Amount
Purpose: Identifies outstanding receivables.
Remaining to Invoice
What it is: Value yet to be billed.
Formula: Revised Contract Price - Invoiced Amount
Purpose: Shows potential future billing.
Remaining to Invoice Percentage
What it is: Unbilled portion of the contract.
Formula: (Remaining to Invoice ÷ Revised Contract Price) × 100
Purpose: Highlights pending billing opportunities.
Cost to Complete
What it is: Cost needed to finish the project.
Formula: Max(0, Total Project Costs - Actual Costs)
Purpose: Forecasts future expenditure.
Price Per Area
What it is: Contract value per square meter/foot.
Formula: Revised Contract Price ÷ Project Area
Purpose: Enables benchmarking against industry norms.
Cost Per Area
What it is: Project cost per square meter/foot.
Formula: Total Project Costs ÷ Project Area
Purpose: Assesses cost-efficiency.
Tax Handling
Most metrics are calculated in both tax-excluded and tax-included versions
The system automatically handles tax calculations based on income tax rates and expense tax rates
Use tax-included values for general management reporting unless specific tax analysis is needed
Allowances
Allowances can be calculated using different methods (selections-based or other methods)
The system tracks both budgeted allowance amounts and actual costs
Allowance differences are calculated and included in change order totals
Change Orders vs. Selections
Change Orders: Formal contract modifications that change scope or price
Selections: Client choices within allowance items that may affect final costs
Both are tracked separately but contribute to overall project financials
Project Health Indicators
Positive Gross Margin: Project is profitable
Completion % vs Invoiced %: Shows if billing is keeping pace with work
WIP Balance: Indicates billing timing issues
Actual vs Budgeted Costs: Reveals cost control effectiveness
Cash Flow Management
Monitor Remaining Balance for collection priorities
Track Remaining to Invoice for upcoming billing opportunities
Use Cost to Complete for cash outflow planning
Performance Analysis
Compare Actual Gross Margin to Planned Gross Margin
Analyze Cost Per Area against historical projects
Review Completion Percentage for project status updates
Estimates (Original Budget)
Initial project cost estimates broken down by cost codes
Forms the baseline "original" budget amounts
Calculated with taxes and markup included
Bills (Actual Spending)
Real invoices/bills received from vendors
Tracked by payment status: Paid, Partially Paid, Approved, Draft
Includes tax calculations and credit tracking
Change Orders
Approved/released modifications to original scope
Can increase or decrease project costs
Added to original estimates for "revised" budget
Purchase Orders
Committed future spending
Status: RELEASED (approved) vs PENDING (draft)
Used for projected cost calculations
Time Logs (timesheet entries)
Labor hours tracked by cost code
Approved hours count as actual costs
Submitted hours count as pending costs
Key Calculated Metrics
Original vs Actual vs Projected
Original = Initial estimated + approved change orders
Actual = Paid Bills + approved time logs
Projected = Purchase orders + bills not tied to POs + time logs
Variance Analysis
Difference = Original - Actual
Difference % = (Difference / Original) x 100
Cost Completion Tracking
Cost to Complete = Projected Cost - Actual Cost
Left to Complete = Revised Budget - (Paid + Time Logs)
These metrics give a 360° view of your project’s financial health—from cost tracking and revenue to progress and cash flow. Use them to make informed decisions, identify risks early, and stay on top of both your budget and profitability throughout the project lifecycle.
