How to Track Job Costs as a Contractor (and Find Out Which Jobs Actually Make Money)

Many contractors know their bank balance but not which jobs made money. Job costing means comparing what you quoted to what you actually spent. It is the fastest way to improve your next quote.

What to track on every job

• Labour hours by person (including your own)
• Materials with receipts, returns and waste
• Subcontractor costs
• Equipment and rentals
• Travel, disposal and permits
• Change orders and approved extras (see our guide)

Estimate vs actual

For each job, put the quoted number next to the actual cost in the same categories. The difference is where you learn. If painting prep always runs 30% over, your quote is wrong, not your crew.

Allocate overhead honestly

Insurance, vehicles, software, admin and your own unpaid time belong in the cost of doing business. Spread them across jobs as a percentage or hourly rate so a "profitable" job is actually profitable.

Simple tracking system

1. Create a job file or folder for every accepted quote.
2. Log hours daily on a phone, not on Friday from memory.
3. Photograph receipts on the spot and tag them to the job.
4. Review each job at completion: quoted vs actual, margin and notes.

Warning signs

• Materials cost creeping above your estimate
• Labour hours consistently exceeding the plan
• Many unbilled extras
• Jobs that finish late and tie up crews

Use the results

Update your price list and markup using real data. See markup vs margin. Software that links the quote to the job and invoice, like quoteai for general contractors, makes the comparison automatic instead of a weekend project.