The Core KPIs (Plain-English Formulas)
Start with a handful that expose margin, schedule, and cash risk early.
- Win Rate = Won Jobs ÷ Total Bids (period). Track by lead source and service.
- Backlog = Value of awarded work not yet billed (next 3–6 months).
- Gross Margin % = (Revenue − Direct Costs) ÷ Revenue.
- Labor Productivity = Units Installed ÷ Labor Hours (by phase/cost code).
- WIP Accuracy = Percent-complete vs. budget by SOV line (AIA/progress jobs).
- DSO (Days Sales Outstanding) = AR ÷ (Average Daily Revenue).
- Change-Order Cycle Time = Days from request → signed CO/EWA.
What to Review Weekly vs. Monthly
Keep weekly reviews tactical and monthly reviews strategic.
- Weekly: labor productivity, coding accuracy, open EWAs/COs, percent-complete changes, open pay apps, on-time timecards.
- Monthly: win rate, backlog trend, gross margin by job, WIP reconciliation, DSO and collections status.
Data Hygiene That Makes KPIs Trustworthy
Clean inputs → reliable dashboards.
- Require daily time entry by job → phase → cost code in the Werx Field App.
- Use EWAs and signed change orders to capture scope shifts before work.
- Update SOV percent-complete for AIA/progress billing weekly.
- Send invoices quickly and offer online payment to lower DSO.
- Sync customers, invoices, and payments to QuickBooks Online.
Simple Dashboard Layout (Exec & PM Views)
Show few numbers, update often, and highlight exceptions.
- Executive: Win Rate, Backlog (by month), Gross Margin %, DSO, Cash-in-last-30, Change-Order Cycle Time.
- Project Manager: Labor Productivity by phase, WIP variance (budget vs. actual), Open COs/EWAs, Pay App status (submitted/approved/paid).
How to Improve KPIs (Quick Wins)
Small process tweaks can move the numbers fast.
- Win Rate: option-based proposals + 24h/72h/7d follow-up.
- Gross Margin: tighten change-order approval before work begins.
- Productivity: daily coded hours and photo-backed progress.
- DSO: send invoices within 24–72h, accept card/ACH, nudge at 15/30 days.
- WIP: refresh percent-complete weekly; align field notes to SOV lines.
Where Werx Fits
Werx connects field data to billing and accounting so KPIs are accurate without double entry.
- Real-time time and EWAs from the field
- Contract Projects with SOV, retainage, and CO tracking
- AIA/progress pay apps and T&M invoices
- Online payments with QuickBooks sync
FAQs About Contractor KPIs
What’s a good target for DSO?
Many contractors target 30–45 days. Shorten by invoicing faster, enabling online payments, and following a 7/15/30-day collections cadence.
Margin vs. markup—which should I track?
Track gross margin % for financials. Use markup in estimating, but convert to margin when reviewing job performance.
How often should I update WIP?
Weekly on active AIA/progress jobs so pay apps reflect true percent-complete and revenue recognition stays accurate.
TL;DR Recap
- Track a short list weekly/monthly: Win Rate, Backlog, Gross Margin, Productivity, WIP, DSO
- Standardize formulas and review cadences
- Use field-coded time, EWAs, and quick invoicing to improve results
- Werx ties field, billing, payments, and QuickBooks together for reliable KPIs
