Contractor guide
Job Costing
How to track what every job actually costsand whether it made money.
What Is Job Costing?
Tracking all costs tied to a specific job.
Comparing estimated numbers against what actually happened.
What You Need to Track
- Labor, including hours and actual cost
- Materials
- Subcontractors
- Equipment
- Overhead allocation
Estimated vs Actual
Job costing compares what you planned to spend with what you actually spent.
Most jobs go wrong when labor runs long, materials creep up, or small changes never get recorded and billed.
Why Most Contractors Don't Do This
- It feels too manual
- There is no system in place
- Information is scattered across texts, notes, invoices, and memory
Simple Example
Job Estimate: $10,000
Actual Cost: $8,500
Profit: $1,500
But if labor runs over by a few days, that profit can disappear fast. A labor overrun is enough to turn a decent job into a break-even job or a loss.
Why This Matters
- You can't improve what you don't measure
- Pricing gets better over time
- There are fewer surprises when costs are visible early
What to Do Instead
- Track every job consistently
- Record changes as they happen
- Review results after each job
Related links
How to track what every job actually costsand whether it made money.