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Financialaka: WIPaka: WIP scheduleaka: work-in-process

Work in Progress (WIP)

In Plain English

A financial report that shows the current billing and profitability status of every active construction project.

Definition

Work in Progress (WIP) is a financial schedule prepared by a construction contractor that calculates the earned revenue, costs incurred, billings to date, and resulting over- or under-billing position for each active project. WIP schedules are a key financial statement used by bonding companies, lenders, and CPAs to assess contractor financial health. A deteriorating WIP trend — growing underbillings, declining backlog margin — is an early warning sign of financial distress.

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