I came across a small but eye opening issue in an AIA billing job costing review.
A subcontract package was billed at $48,500, but when I checked the job costing details, the actual approved cost was only $41,200.
At first, the difference looked minor.
But after breaking it down, I found that $3,800 had been duplicated under material claims, and another $2,500 was recorded as labor even though the work was never completed on site.
That meant the job was overstated by $7,300.
If this had gone unnoticed, it could have affected both cash flow and project margin.
What this taught me is simple: in billing and job costing, even small mismatches matter.
A few thousand dollars may not sound like much in construction, but over multiple projects, those gaps can become a serious problem.