Contractor finance
Check whether a job is still on track to finish with profit.
Estimated final cost = Costs incurred so far / percent complete
Estimated profit = Total job budget - estimated final cost
This tool assumes the current cost pace continues through the rest of the job.
Results
These numbers show what the job looks like at the current burn rate.
Estimated final cost
$24,000.00
Estimated profit
$0.00
Profit risk indicator
Medium
Projected profit is still positive, but the remaining room is thin or the job is still early.
Current position
Earned revenue at current completion 55%: $13,200.00
Profit to date against that progress: $0.00
The tool compares cost incurred to actual progress. If 50% of the job is done and 50% of the cost has been spent, the job is tracking to the original budget. If cost is arriving faster than progress, the projected profit starts falling.
Profit fade means the expected profit on a job declines as the work moves forward. The budget may stay the same, but the estimated final cost keeps rising.
A contractor starts a $24,000 tenant improvement expecting to finish at $19,000 in total cost. Midway through the job, the team reports the work is 50% complete, but cost incurred is already $13,500. That pace projects a final cost of $27,000. The expected profit has faded from a gain to a loss.
Profit fade usually appears before the job is finished. If you can see it early, you can correct labor, push change work, tighten purchasing, or stop absorbing costs that should be priced separately.
Profit is easier to protect when budget, cost, progress, and change work stay in the same job record.