A KPI scorecard is one page with the same handful of numbers every month, each with a target and a person who owns it. For a construction company, the useful KPIs are the ones that lead to a decision: which work to chase, which job type to reprice, which crew needs help, whether you can afford to grow. Ten numbers reviewed every month beat thirty numbers nobody looks at.
This guide gives you a ten-KPI scorecard for contractors, how to calculate each number, a worked example, a 45-minute monthly review, and how to use the scorecard to choose better work.
Why a long KPI report doesn’t help
A report with a lot of numbers on it often doesn’t change anything, because:
- There’s no target, so nobody knows whether 31% is good or bad.
- There’s no owner, so a number going the wrong way is everyone’s problem and nobody’s job.
- It’s revenue-heavy. Revenue tells you how busy you were, not whether being busy was worth it.
- It isn’t reviewed on a fixed day, so it gets looked at when something already feels wrong.
A scorecard fixes all four: few numbers, a target for each, an owner for each, the same meeting every month.
The ten KPIs
| # | KPI | How to calculate it | What it tells you | Suggested owner |
|---|---|---|---|---|
| 1 | Revenue: booked and collected | Signed work this month; cash received this month | Whether sales and collections are keeping up with the work | Owner |
| 2 | Gross margin | (Revenue − direct job costs) ÷ revenue, on jobs closed this month | Whether you’re pricing and running jobs well | Owner or operations manager |
| 3 | Margin variance | Actual gross margin − estimated gross margin, on jobs closed this month | Whether jobs finish at the margin you bid | Estimator |
| 4 | Gross profit per crew hour | Gross profit ÷ crew hours, by job type | Which work makes the most of your limited crew time | Owner |
| 5 | Backlog | Signed work not yet done, in crew-weeks | How far ahead your crews are booked | Sales or owner |
| 6 | Close rate | Proposals signed ÷ proposals sent, by count and by value | Whether you’re quoting the right work at the right price | Sales or estimator |
| 7 | Days to invoice | Days from work finished to invoice sent, averaged | How fast closeout turns into billing | Office |
| 8 | Receivables over 30 days | Total unpaid invoices more than 30 days past their date | Money you’ve earned but can’t use | Office |
| 9 | Cash low point | The lowest balance in your 13-week cash flow forecast | Whether you can afford what’s coming | Owner |
| 10 | Rework hours | Rework and callback hours ÷ all labor hours | Quality, and a margin leak you can measure | Operations or crew leads |
A few notes:
- Gross profit per crew hour is worth tracking. Crew time is the thing you can’t easily buy more of. Construction job costing shows how to calculate it.
- Backlog in crew-weeks, not dollars. “Eleven crew-weeks of signed work” tells you whether to sell harder or slow down. “$410,000 of backlog” doesn’t.
- Targets are yours. Set them from your own numbers: your required gross margin from construction profit margins, your minimum cash balance, your own past close rate.
Service-heavy businesses (HVAC, plumbing, electrical service) can swap one or two for first-time fix rate (jobs finished on the first visit ÷ all jobs) and repeat customer rate. For financial ratios like receivables turnover and debt-to-equity, see essential financial KPIs for contractors.
Example scorecard
A three-crew remodeling company. All numbers are made up to show the format. Green is on target, Amber is slightly off (watch it), Red is clearly off and needs an action this month.
| KPI | Target | Last month | This month | Status | Note |
|---|---|---|---|---|---|
| Revenue booked / collected | $190k / $180k | $205k / $172k | $176k / $194k | Amber | Booking dipped; collections caught up |
| Gross margin | 30% | 29.4% | 27.8% | Red | Two deck jobs well under |
| Margin variance | −1 pt or better | −2.1 pts | −4.0 pts | Red | Same two decks: labor over estimate |
| Gross profit per crew hour | $40 | $41 | $37 | Amber | Pulled down by the decks |
| Backlog | 8–12 crew-weeks | 11 | 9 | Green | |
| Close rate (by value) | 35% | 38% | 31% | Amber | Lost two large kitchens on price |
| Days to invoice | 2 | 3 | 5 | Red | Timesheets late on three jobs |
| Receivables over 30 days | under $15k | $21k | $12k | Green | |
| Cash low point (13 weeks) | over $40k | $52k | $38k | Amber | Dip in week 7: insurance renewal |
| Rework hours | under 3% | 2.6% | 3.4% | Amber | Cabinet install errors on one job |
The meeting skips the green rows and spends its time on the reds: the two deck jobs behind both margin rows (estimate or field?) and the late timesheets behind days to invoice. The amber cash low point gets a quick look too: the insurance renewal in week 7 needs planning.
Use the scorecard to choose better work
Once a quarter, break gross margin, gross profit per crew hour and close rate down by job type. Example numbers, made up:
| Job type | Jobs | Gross margin | Gross profit per crew hour | Close rate | Decision |
|---|---|---|---|---|---|
| Bathrooms | 14 | 34% | $52 | 41% | Market more; raise prices slightly |
| Kitchens | 6 | 29% | $44 | 22% | Review why the large bids are being lost |
| Decks | 9 | 22% | $31 | 48% | Reprice: winning half of all bids at this margin suggests the price is too low |
| Small repairs | 31 | 38% | $18 | 70% | Set a minimum charge, or refer them out |
Two things stand out. Small repairs have the best margin percentage and the worst use of crew time, because travel and set-up eat the hours. And decks are winning too often at too low a margin, which points to a pricing problem, not a sales success.
That’s how a scorecard changes what you sell: not “more revenue,” but more of the work that makes the most of your crews.
Run a 45-minute monthly review
Same week every month, with the people who own the numbers.
- Before the meeting (owners of each KPI): fill in this month’s number and a one-line note. Nobody fills in numbers in the meeting.
- 10 minutes: the scorecard. Read it top to bottom. Skip the greens.
- 20 minutes: the reds. For each one: what caused it, one action, one owner, a date.
- 10 minutes: last month’s actions. Done, not done, did it work?
- 5 minutes: one decision about the work you take on. Chase, reprice, stop or refer out one type of job.
Keep the actions and check them next month. A scorecard without follow-up is a report.
Common mistakes
- Too many numbers. Start with these ten or fewer. Add one only when you drop one.
- Numbers that arrive late. If job costs and timesheets aren’t in until weeks after the job, the scorecard is always a month behind.
- No targets. A number with no target can’t be red or green, so it never triggers a decision.
- Judging people by numbers they don’t control. The estimator owns margin variance, but the cause may be in the field. Use the review to find out, not to blame.
Your next action
- Copy the ten KPIs into a one-page sheet. Cut any that don’t fit your business.
- Set a target for each from your own numbers, and name an owner.
- Fill it in for last month, then hold the first 45-minute review.
- Next quarter, add the job type breakdown and make one decision about your work mix.
What to review: the reds each month, and whether last month’s actions moved them.
Next course: build a sales process your team can run without you.
FAQ
What KPIs should a construction company track?
The ones that lead to decisions: booked and collected revenue, gross margin, actual vs. estimated margin, gross profit per crew hour, backlog in crew-weeks, close rate, days to invoice, receivables over 30 days, the low point in your cash forecast, and rework hours. Ten is plenty.
What is a KPI scorecard?
A one-page table of your key numbers with a target, this month’s result, last month’s result and an owner for each. It’s reviewed at a fixed meeting every month, and anything off target gets an action.
How often should contractors review KPIs?
Monthly for the scorecard, quarterly for the breakdown by job type. Cash is the exception: look at your cash forecast every week.
How many KPIs should I track?
As few as you’ll actually act on. Start with eight to ten. If a number never leads to a decision, drop it.
Where MotionOps helps
In MotionOps, several of these numbers come from work you’re already recording:
- Job Costing: each job’s revenue compared with its actual labor and material costs, with its profit margin.
- Business Units & Job Types: assign job types to proposals and work orders for revenue reporting by type of work.
- Advanced Reporting: compare booked and collected revenue for the timeframe you select.
- Billing Metrics: see how many invoices are outstanding.
- Financial Reports: payouts, invoices, revenue, taxes and lead source performance.
- Team Reports: leaderboards for account managers, project managers and technicians.
See plans and pricing, or try MotionOps free.
