In construction, trust is everything—especially on high-end, cost-plus jobs where every dollar must be accounted for. Yet one of the fastest ways to erode that trust (and margin) is through job costing mistakes that go unnoticed until it’s too late.

Whether it's miscategorized invoices, outdated reporting tools, or billing processes that lag behind the real world, poor financial workflows don’t just cause confusion—they break credibility with clients and cost builders real money.

We recently spoke with Joel Route, controller at Mark D. Williams Custom Homes, about the job costing pitfalls he inherited, how they impacted client trust, and what he’s done to eliminate those risks from their financial operations.

When Good Builders Lose Money to Bad Financial Processes

Mark D. Williams Custom Homes is a luxury builder in the Twin Cities, averaging $3M+ projects. As a cost-plus firm, their clients get full visibility into how every dollar is spent. That means accuracy isn't optional—it's part of the product.

But before Joel took over, the team struggled to maintain that standard. Invoices were being entered into QuickBooks, but Buildertrend (their project management tool) wasn’t pulling in accurate data. This caused:

• Invoices being billed twice.
• Costs hitting the wrong job codes.
• Change orders going unbilled—or being billed months late.

By the time these errors were caught (usually at project closeout), the damage had already been done. In some cases, those mistakes led to $60K–$70K in lost margin—per job.

“The numbers always added up in the end, but the client’s confidence didn’t. That meant we had to eat costs just to protect the relationship,” says Joel.

Why These Mistakes Happen (and Keep Happening)

Most builders don’t set out to overbill or break trust. But even experienced teams fall into costly traps like:

• Manually duplicating data across multiple systems.
• Incorrect cost code mapping due to lack of construction-specific accounting knowledge.
• Pushing change orders to the end of the job instead of addressing them in real time.
• Misalignment between AP and job cost reports, leading to confusion during invoicing.

And while the solution often lies in better tools and processes, many firms are resistant to change—especially when “the way we’ve always done it” feels familiar.

“Builders aren’t bad at tracking costs. They just operate in an industry where it’s really hard to do. You’ve got hundreds of invoices, constantly changing scope, and a dozen ways to lose track.” – Reece Barnes

The Case for Real-Time Job Costing

What changed for Joel and the team at Mark D. Williams? Real-time job costing—and eliminating redundant workflows.

They centralized AP, change orders, and draw prep inside a single financial platform (Adaptive), integrated it with QuickBooks, and moved away from duplicating data between systems.

Now, when an invoice is coded incorrectly, it’s fixed immediately—not after the project is finished. And when a client requests a detailed cost breakdown, it’s ready within seconds.

• No more double billing.
• No more end-of-job surprises.
• No more manual spreadsheets.

Most importantly, clients now trust the numbers—because the team does too.

The Hidden Cost of Waiting

One of the biggest revelations? Mistakes in financial workflows don’t just cost money—they cost momentum.

Builders who delay billing change orders or hold off on tracking costs in real time often find themselves backed into a corner, trying to justify costs months after a decision was made.

That’s when clients push back. That’s when margins shrink. That’s when relationships get strained.

And it’s completely avoidable.

As Joel put it: “You’re never going to make more margin at the end of a job. But you can absolutely lose it if your numbers aren’t tight.”

Final Takeaway: Clean Financials Build Client Confidence

You can be the best builder in the world, but if your client sees a messy draw package, unclear costs, or misaligned invoices, they’ll question everything.

• Real-time job costing builds trust.
• Streamlined processes protect margin.
• Clear, accurate reporting reduces drama—at closeout and throughout the build.

So if you're still juggling spreadsheets, manually managing lien waivers, or delaying change orders until the end, it’s time to ask: what is that really costing you?

‍