Daaxit has released a new educational resource designed to help construction companies transform key performance indicators (KPIs) into a monthly management scorecard. The guide emphasizes connecting company goals with measurable financial and operational results, addressing a common challenge where contractors collect data but lack a consistent review process.
The resource outlines categories of information essential for monitoring profitability, cash flow, active jobs, backlog, labor performance, and monthly financial position. It begins with financial indicators such as revenue, gross profit, gross-margin percentage, net profit, EBITDA, cash flow, accounts receivable, debt, and working capital. Job-level indicators include estimated margin, current margin, labor productivity, work in progress, underbilling, overbilling, change orders, and cost to complete. By reviewing these measures while projects are active, leadership teams can gain a more current view than waiting until jobs close.
Daaxit's founder and CEO, Aaron Mills, emphasizes that the scorecard should clarify responsibility rather than add reporting layers. “The purpose is to show what changed, who owns the result, and what action needs to follow during the next review cycle,” he said. The guide treats cash flow separately from reported profit, identifying cash forecasts, receivables aging, retainage, payroll requirements, vendor obligations, debt payments, and billing position as key measures. This helps explain why a profitable contractor might still face liquidity issues.
Backlog is also evaluated distinctly from total contracted work. The resource notes that backlog quality depends on expected margin, labor availability, project timing, customer payment terms, material exposure, and capacity to perform. Mills wrote that a growing backlog may support future revenue but can also increase working-capital demands and operational risk if assumptions are not reviewed.
The guide emphasizes monthly accountability, recommending that each major KPI have an owner. Financial indicators may be owned by the CFO or finance lead, while operational metrics involve project managers, accounting, or department leaders. Tracking targets, current results, prior-period results, and follow-up actions helps identify trends and document responsibility. Mills describes this as a management routine, not a one-time dashboard project, with value dependent on consistent data, regular review, and follow-through.
The framework is adaptable for general contractors, builders, and specialty trades. Service contractors may focus on technician productivity, dispatch performance, and fleet use, while project-based contractors emphasize work in progress, cost to complete, and backlog margin. The resource also suggests separating performance by division, location, project type, or team when needed. The full guide is available at Daaxit.
