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Published May 12, 2025 . 4 mins read

The Most Underrated Tool in Construction

When you think of powerful construction tools, what comes to mind?

You might be thinking of a bulldozer, a crawler crane, or a tunnel boring machine. While those are all very powerful, I would argue that the Work-in-Progress (WIP) report is even more powerful, but for many companies, it’s also one of the most underutilized.

That’s a problem. Because in today’s environment, where rising costs, labor shortages, and market volatility are everyday realities, being able to understand and act on the financial health of your projects in real time isn’t a luxury — it’s a necessity.

The challenge? Traditional WIP processes are built around disconnected systems, delayed updates, and backward-facing data. At best, they help you understand what went wrong last month. At worst, they cause confusion, mistrust, and missed opportunities.

It doesn’t have to be that way. Here are four ways to modernize your WIP approach and transform it from a static report into a proactive decision-making engine.

Bruce Orr
Chief Data Scientist & CEO,
ProNovos

1. Stop Waiting for Month-End

Shift from reporting the past to monitoring the present.

Many firms still treat WIP reporting as a monthly or quarterly box to check. But in a world where cash flow can swing fast and job margins can erode quickly, that cadence is too slow.

Instead, think of your WIP as a living document, one that’s updated weekly (or even daily) and accessible to both the office and the field. Use tools that integrate with your ERP or project management software (such as ProNovos Financial Intelligence) to pull in real-time data, so everyone, from the CFO to project managers, works from the same source of truth.

Even simple, recurring reviews of core metrics, such as percent complete,
over/under billings, and margin trends, can give your team the chance to act before problems escalate.

2. Make WIP a Team Sport

It’s not just a finance tool — it’s a communication tool.

Too often, WIP reports are created by the accounting department, and then during project reviews, Project Managers are grilled about project financials. That dynamic fosters defensiveness rather than dialogue.

A more effective approach is to bring finance and operations together on the same side of the table. Use WIP as a tool for collaborative forecasting, shared accountability, and proactive planning.

Make it a habit to:

• Review projected costs and margins with PMs

• Compare financial forecasts with actual field conditions

• Identify and resolve discrepancies together

3. Forecast, Don’t Just Track

Use the WIP to look ahead, not just explain what happened.

A backward-looking WIP tells you how you did. A forward-looking WIP tells you what you need to do next.

By layering in forecasting tools, you can:

• Project revenue and cash flow with greater accuracy

• Spot potential margin fade before it happens

• Adjust billing schedules to match actual production

4. Make Your WIP Executive-Ready

Your leadership team (and your bonding agent) are watching.

When WIP reports are clear, current, and connected to operations, they become a valuable tool for leadership. They reveal how the business is performing, not just at the company level, but across divisions, teams, and project types.

They also help strengthen external relationships with sureties and banks. A well-maintained WIP report shows that your company is on top of its numbers, can explain variances, and has systems in place to manage risk.

Final Thoughts

There will always be big, powerful machines on a construction site. But in today’s economy, the most important tool might be the one that lives in your financial system.

The Work-in-Progress report isn’t just a spreadsheet; it’s a strategic asset. When treated as such, it becomes the foundation for making better decisions, fostering stronger collaboration, and achieving more resilient operations.

CFMA Annual Conference, I’ll be diving deeper into this topic on Wednesday, May 21, at 12:15 PM ET. But even if you’re not, I encourage you to take a fresh look at how your WIP is built, used, and shared. And if you have questions, I am here to help.

Because the best-run construction companies aren’t just watching their numbers — they’re using them to lead.