Watch your over / under billings for warnings of troubled projects.

1. What are over / under billings
   1. Variances in costs versus billings
   2. Comparison % of costs incurred and % of billings
   3. Key indicator of the project health
      1. Good profits are great but a volatile O/U billings is not a healthy position
2. Why is it important
   1. Predicts future outcome of your project
      1. Under billings = more costs than income – could indicate a deeper problem
      2. Over billings = more income than costs – could indicate a future cash flow strain
   2. Shows trends over many projects
   3. Allows you to adjust
3. Follow Plan, Do, Check, Act
   1. Successful contracting must follow this philosophy
   2. Keep your WIP up to date and watch for large variances
   3. When you see key indicators showing variances it’s time to investigate
   4. Adjust your timing based on your projects