Inaccurate Job Costing Leading to Budget Overruns

$1,500-$4,000 per month in unrecovered rework labor and materials due to poor quality visibility • $12,000-$25,000 per month in unrecovered costs from projects that ran over budget • $2,000-$5,000 per month in excess freight and rush delivery fees due to poor project visibility

Allocates based on chronological order or supervisor preference; discovers mid-project that a job is bleeding money; reallocates crews late • Books standard routes based on geography; rebooks mid-way when project delays occur; absorbs freight overages as business cost • Calls project manager or site supervisor to verify costs; delays invoicing; sends estimated invoices; issues credit memos after reconciliation