2026-07-21
Job Costing for Contractors: A Practical Starter Guide
TL;DR: Budget, committed, actual, projected — the four numbers that tell you if a job is making money.
Job costing compares what you planned to spend against what you've committed and actually spent, by cost code.
The most important number is projected final cost: actual plus cost-to-complete. Compare it to revised budget to see margin fade early.
Accurate job costing depends on timesheets coded to jobs and POs tied to cost codes.
Free templates for this
| Cost Code | Description | Original Budget | Changes | Revised Budget | Committed | Actual | Cost to Complete | Projected | Variance | |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | $1,250 | Site preparation | $1,250 | Site preparation | $1,250 | Site preparation | Site preparation | $1,250 | Building A · Level 1 | Site preparation |
| 2 | $1,500 | Material review | $1,500 | Material review | $1,500 | Material review | Material review | $1,500 | Building A · Level 2 | Material review |
| 3 | $1,750 | Area inspection | $1,750 | Area inspection | $1,750 | Area inspection | Area inspection | $1,750 | Building A · Level 3 | Area inspection |
| 4 | $2,000 | Crew coordination | $2,000 | Crew coordination | $2,000 | Crew coordination | Crew coordination | $2,000 | Building A · Level 4 | Crew coordination |
| 5 | $2,250 | Closeout review | $2,250 | Closeout review | $2,250 | Closeout review | Closeout review | $2,250 | Building A · Level 5 | Closeout review |
Accounting · Job Costing
Job Costing Template
Budget vs. committed vs. actual by cost code with projected final cost.
Excel
Free →
Accounting · Timesheets & Payroll
Construction Timesheet Template
Weekly crew timesheet by job and cost code with overtime calculation.
ExcelMacros
Free →