Construction Job Costing estimate, actual, and the gap.
Construction job costing for contractors who want every hour, invoice, and change order tied to a job, with estimate-to-actual reports while the job is still open.
Construction job costing works only when it is set up the way you estimate. If your bids are built by phase and cost code, your books need the same structure, or the comparison breaks. TreeStar sets up jobs and cost codes in QuickBooks Online to mirror your estimates, applies a labor burden rate that includes payroll taxes, workers' comp, and benefits, and tracks change orders from request to approval. Each month we reconcile job costs to the general ledger and report estimate versus actual by job and cost code. You see overruns while the job is still running, not at closeout.
Where it gets complicated
- 01 Mismatched cost codes
When cost codes in the books differ from the estimate, nobody can compare them. Variance reports turn into arguments about categories.
- 02 Labor burden left out
Raw wages understate labor cost. Payroll taxes, workers' comp, benefits, and paid time off add a real layer that bids and job reports often miss.
- 03 Change orders in limbo
Extra work gets done on a verbal approval and is billed late or never. Pending changes need tracking separate from approved contract value.
- 04 Costs coded late
Bills coded weeks after the fact, or to the wrong job, make job reports unreliable. Field and office need one simple coding habit.
- 05 Committed costs ignored
Purchase orders and subcontracts signed but not yet billed are real costs. Leaving them out makes a job look healthier than it is.
How TreeStar helps
We build job and cost code structures that match how you bid, so estimate and actual line up.
→ controller_services Set labor burden ratesWe calculate burden from your actual payroll, insurance, and benefit costs and update it as rates change.
→ ongoing_bookkeeping Log change ordersWe track change orders as pending or approved and update contract value and budgets once they are signed.
→ monthly_close_reporting Report estimate to actualEach month we reconcile job costs to the ledger and report variance by job and cost code.
→What you can expect
Estimate and actual compared by cost code
Labor cost that includes true burden
Change orders tracked from request to billing
Common questions
How many cost codes should we use?
Enough to match how you estimate and manage, and no more. Too many codes invite miscoding; too few hide where overruns start.
What is labor burden?
Labor burden is the cost of an employee beyond gross wages, such as employer payroll taxes, workers' comp, health benefits, and paid time off. Adding it to job labor shows what each hour actually costs you.
Will job costing work if our field crew is not tech-minded?
Yes. We design simple coding steps for timecards and receipts, then handle the reconciliation and reporting in the office.
Need a referral?
We work alongside the attorneys, consultants, and other specialists your industry relies on. Tell us what you need and we will make an introduction.
Bonding capacity, bid bonds, and performance bonds.
→ request_referral Construction attorneyContracts, liens, disputes, and licensing questions.
→ request_referral Contractor insurance brokerGeneral liability, workers' comp, and builder's risk.
→ request_referral Contractor licensing consultantLicense applications and classifications.
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