Job costing basics for small contractors

If you do not know what a job actually cost, you cannot know whether you made money on it.

Track four buckets

Labor (hours times loaded rate), materials, subcontractors, and other direct costs such as permits, dump fees and fuel.

After each job, put the estimated cost next to the actual. Repeated gaps in one kind of job show you where your pricing is off.

Drive time, supply runs and callbacks cost money even when nothing is billed. Include them in your loaded rate or your quote.

A 25 percent markup is a 20 percent margin, not 25. Mixing them up is a common reason profit comes in lower than planned.

Pick your five biggest jobs and check each against its estimate. Adjust your pricing where the same trade or job type keeps coming in low.

Tracking what each job actually cost in labor, materials and other direct costs, then comparing it to what you charged.

Monthly is a practical rhythm for a small shop.

General information, not legal, tax or financial advice. Last reviewed 2026-11-02. Verify with your attorney or accountant.

Try BossHours free for 7 days

Field Hours $149, Office Hours $379 and After Hours $499 a month. Unlimited users on every plan, no setup fee, month to month, 7-day free trial.