What underwriters actually look for in a WIP schedule

In contract surety, the work-in-progress (WIP) schedule does more to determine your bonding capacity than almost anything else. It shows the surety how you estimate, how you bill, and whether your jobs are making the money you expected. A clean, accurate WIP is the fastest way to a higher limit.

What the surety is reading

• Gross profit by job and overall — are margins holding, or eroding as work progresses?
• Billings vs. costs — overbillings (billing ahead of cost) support cash; large underbillings can signal trouble.
• Estimated cost to complete — is it realistic, or is the job being optimistically carried?
• Backlog and remaining gross profit — how much profitable work is still ahead of you.
• Any jobs in a fade or loss position — these draw the most scrutiny.

Common flags

Profit fade — where a job's expected margin shrinks quarter over quarter — is the classic warning sign. So are heavy underbillings, a single job that dwarfs the rest of the schedule, and WIP that doesn't tie to the financial statements. None of these are automatically disqualifying, but they need explanation.

Make it work for you

Keep the WIP current, tie it to your financials, and be ready to explain any job that's faded or is carrying an unusual billing position. Use a consistent template (ours is on the Resources page). A contractor who presents a tight, well-explained WIP signals exactly the discipline a surety wants to back — and that translates directly into capacity.