MARGINSPAN INSIGHT

Underbilling & Unbilled Work in Construction

Where earned construction revenue gets trapped—and how to identify whether the gap is normal timing, weak documentation, unresolved change, or a deeper commercial problem.

01

Separate timing from exposure

Not every underbilling condition is a loss. Timing differences can be normal, but aging earned value without a clear path to billing deserves commercial review.

02

Trace performed work to the billing structure

Compare field progress and earned work with the schedule of values, approved contract value, pay application timing, and the rules governing when that work can be billed.

03

Find change-related revenue gaps

Performed change work may sit outside the billing stream because pricing, approval, documentation, or schedule-of-values integration has not caught up.

04

Review supportability

Revenue should have a defensible path through scope, evidence, entitlement, approval status, and billing mechanics. Unsupported optimism should not be treated like secured revenue.

05

Age the open position

The longer earned or claimed value remains unbilled, the more important ownership, documentation, follow-up, and escalation become.

PROJECT REVIEW LENS

What the record should tell leadership.

Earned, approved, billed, receivable, and collected are different commercial states. Review them separately.