What Is A Job Cost Sheet?
A job cost sheet is an accounting document used during the ongoing tracking of a construction project. It typically details the costs associated with labor and materials needed to complete the job. Knowing how to properly use and read a job cost sheet is essential to understanding the finances of a construction job.
How to Read a Job Cost Sheet
Job cost sheets usually break down the job into the following categories:
- Materials and Supplies: This includes items needed for the job such as lumber, hardware, paint, etc.
- Labor: This includes contractor wages or subcontractor payments for labor as well as any applicable taxes, fees, and insurance.
- Equipment: This section includes any equipment or machinery that was rented, leased, or purchased for the project.
- Overhead: This includes the general and administrative costs associated with the project such as fuel, taxes, and insurance.
- Subcontractors: This section includes payments made to subcontractors for their services.
Benefits of Using Job Cost Sheets
Job cost sheets offer the following benefits when used properly:
- Detailed Tracking: A job cost sheet allows you to track all elements of a construction project in real-time. It gives you an understanding of how the job is progressing and where any cost overruns may be occurring.
- Accountability: Since job cost sheets are used for billing purposes, it provides a detailed record of what was included in the job and how much time was spent on it. This helps ensure that all parties involved in the job are held accountable for the time and money spent.
Using a job cost sheet is a great way to track the progress of a construction job and ensure that all costs are properly accounted for. Take the time to thoroughly understand how to read and use job cost sheets for the best results.