Most contractors review their WIP report once a month and move on. But the best-run companies use it as a strategic leadership tool. In Episode 357, we focused on understanding the WIP—what it is, what it reveals, and how to avoid the costly mistakes hidden inside it.
Part 1: Episode 357 — WIP Reports Made Simple: The Key to Stopping Hidden Job Losses
In Episode 359, we go deeper.
This episode is all about using the WIP to drive better decisions, protect cash, uncover project risks early, and strengthen profitability with far less guesswork.
Our guest, Kathe Barrington, is a CPA who specializes exclusively in construction accounting. For over 20 years, she has worked as a fractional Controller/CFO for contractors ranging from small firms to mid-market businesses. Kathe works hand-in-hand with in-house accounting teams to ensure systems, processes, and reporting are accurate, consistent, and actionable.
Learn more about her at https://www.kbcpa.biz.
You’ll Learn How To:
1. The three numbers every leader must check immediately
Kathe breaks down why contract value, estimated cost, and over/under billing provide the fastest snapshot of risk, margin stability, and cash exposure.
2. The WIP as an early-warning system
Before you ever see margin fade in your P&L or feel cash tightening, the WIP gives early signals—primarily through underbilling patterns.
3. How the WIP exposes PM performance and discipline
We dig into the “roller coaster WIP”—wild swings in estimates, margins, and cost entries—and how weekly job cost reviews prevent financial surprises.
4. How WIP data should influence backlog planning and bid strategy
Kathe explains how to read the WIP to determine:
- When to pursue new work
- When to slow down
- When a client is putting your profitability at risk
- When your backlog requires hiring or capacity adjustments
5. The truth about indirect costs and overhead
Kathe clarifies how contractors bury costs, distort margins, and mislead themselves—then discover far weaker profits than expected. She discusses equipment allocations, yard labor, insurance, and the indirect labor that must be distributed accurately to jobs.
6. Why cash flow is the most significant missed opportunity
Your WIP isn’t just about profitability—it is a cash forecasting tool. Kathe shows how disciplined reading of over/under billings can prevent painful cash flow crises.
Listen or Watch the Episode
Connect with Kathe Barrington
- 🌐 Website: https://www.kbcpa.biz
- 💼 LinkedIn: https://www.linkedin.com/in/kathe-barrington-a6346337/
- 📘 Facebook: https://www.facebook.com/people/Kathe-Barrington-CPA/100072271041746/
👉 More from Construction Genius
- 📘 Get the book Construction Genius: https://www.amazon.com/Construction-Genius-Effective-Hands-Leadership/dp/B0BHTRDY1T/
🧠 Learn about The Shift: Construction Leadership Course
