WIP REPORTING FOR BONDING — WHAT SURETIES REQUIRE.
A WIP schedule sureties trust has five specific columns, comes from closed books on a fixed monthly schedule, and shows a consistent methodology applied to every project. Download the free SPM Lender WIP Template below, then read how to build the 24-month credibility track record that unlocks higher bonding capacity.
Not every WIP schedule satisfies surety underwriting requirements. A WIP produced from open books, missing the overbilling/underbilling position, or using cost-based percent complete instead of physical progress tells the underwriter that the contractor does not have reliable financial visibility. The underwriter responds with lower limits and higher rates.
WHAT A SURETY UNDERWRITER IS ACTUALLY LOOKING AT WHEN THEY REVIEW YOUR WIP.
What Every WIP Schedule Must Show
Contract value (original plus approved change orders). Billed to date (total pay apps submitted). Earned to date (percent complete times contract value). Overbilling/underbilling position (billed to date minus earned to date). Estimated cost to complete. These five columns tell the surety underwriter the complete financial story of every active project: what was contracted, how much has been billed, how much has actually been earned, whether the contractor is ahead of or behind on billing relative to completion, and what the remaining cost exposure is.
Monthly from Closed Books — Why the Timing Matters
WIP produced before the monthly close is based on incomplete data. The surety underwriter who receives WIP from open books is receiving estimated numbers, not actual numbers. Closed-book WIP, produced by the 12th of the following month, demonstrates that the contractor has a financial control system that closes on schedule. The WIP cadence is itself a credibility signal.
What Sureties Read in the Bottom Line
The WIP schedule aggregates to an overall overbilling or underbilling position across all active projects. A contractor with aggregate underbilling — work earned but not yet billed — is demonstrating conservative billing discipline. A contractor with aggregate overbilling is a cash management concern for the surety. The trend matters: overbilling growing month over month is a worse signal than a stable overbilling position.
WHAT EACH COLUMN MEANS AND WHY IT’S THERE.
The SPM Lender WIP Template uses 16 columns derived directly from the format lenders and sureties use to evaluate contractor financial position. Here is what each one means:
| COLUMN | WHAT IT IS | WHY SURETIES CARE |
|---|---|---|
| Job Description | Project name or identifier | Enables project-by-project review — sureties want to see individual projects, not aggregates |
| Total Contract Price | Original contract plus all approved change orders | The revenue ceiling — change orders not included here understate the contract value |
| Estimated Total Cost | Total estimated cost to complete the project at bid | Establishes the original margin assumption the underwriter benchmarks against |
| Estimated Total Profits | Contract price minus estimated total cost | The projected margin; sureties check this against actual closeout history |
| Cost to Date | Actual cost incurred from closed books | Must come from closed books — open-book cost to date is not reliable for underwriting |
| Billed to Date | Total pay applications submitted | Compared to earned revenue to calculate the overbilling/underbilling position |
| Percent Complete | Physical completion — not cost-based | Physical progress basis is required; cost-based % complete overstates completion on over-budget jobs |
| Profit Earned to Date | Estimated total profit × percent complete | Shows the margin earned proportional to progress — compared against actual cost to date |
| Revenues Earned to Date | Contract price × percent complete | The earned value — the revenue the project has actually generated based on physical completion |
| Billings in Excess of Earn. Rev. | Billed to date minus earned revenue (if positive) | Overbilling position — sureties flag contractors with chronic or growing overbilling |
| Earn. Rev. in Excess of Billings | Earned revenue minus billed to date (if positive) | Underbilling position — conservative billing; generally viewed positively by underwriters |
| Cost to Complete | Remaining projected cost to finish the project | The forward-looking exposure — what the surety would have to fund if the contractor defaults |
| Left to Bill | Contract price minus billed to date | Remaining billing capacity — the revenue available to the contractor going forward |
| Gross Profit % | Estimated profit as a percentage of contract price | Quick margin check; compared to the contractor’s historical gross margin |
| Future Profit to Earn | Remaining profit to be earned on the project | Forward-looking margin; used in the WIP cash flow summary at the bottom |
| Pure Job Borrow | Net cash position of the project | Whether the project is net cash positive or negative — the surety’s exposure assessment |
The summary block at the bottom of the template aggregates to a Future WIP Cash Flow calculation: Total Contract Price minus Revenue Earned to Date equals Revenue Left to Earn, minus Cost to Complete equals G.P. Left to Earn, adjusted by the net under/(over)billing position equals the Future WIP Cash Flow. This is the number lenders and sureties use to assess the contractor’s forward-looking earnings capacity.
THE SPM LENDER WIP TEMPLATE — THE FORMAT SURETIES TRUST.
This is the exact WIP template format SPM uses for clients submitting to surety underwriters and lenders. All 16 columns, pre-built formulas for the overbilling/underbilling position, earned revenue, cost to complete, and the full Future WIP Cash Flow summary. Works in Excel. Accepts up to 45 active projects.
| JOB DESCRIPTION | TOTAL CONTRACT | EST. TOTAL COST | EST. PROFIT | COST TO DATE | BILLED TO DATE | % COMPLETE | EARNED REV. | OVERBILLING | UNDERBILLING | COST TO COMPLETE | LEFT TO BILL | GP% |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Project 1 | $5,144,788 | $4,241,606 | $903,182 | $388,689 | $535,386 | 9.2% | $471,454 | $0 | $63,932 | $3,852,917 | $4,609,403 | 17.6% |
| Project 2 | $3,266,844 | $2,693,340 | $573,504 | $501,535 | $624,300 | 18.6% | $608,329 | $0 | $15,971 | $2,191,805 | $2,642,544 | 17.6% |
| Project 3 | $198,711 | $163,827 | $34,884 | $185,858 | $214,599 | 113.4% | $225,433 | $10,834 | $0 | ($22,031) | ($15,888) | 17.6% |
| TOTALS | $8,610,343 | $7,098,773 | $1,511,570 | $1,076,082 | $1,374,285 | 15.2% | $1,305,216 | $10,834 | $79,903 | $6,022,692 | $7,236,058 | 17.6% |
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