Contractor Operations
Work Order
A work order is the document that authorizes and records a specific job. It contains the job details...
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Dispatch
Dispatch is the process of assigning a technician or crew to a job and notifying them with the detai...
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Change Order
A change order is a formal document that records a change in scope, cost, or timeline after the orig...
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Service Call
A service call is a job dispatched to address a specific client issue, typically on demand or with s...
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Estimate
A contractor estimate is a document sent to a prospective client that outlines the expected scope an...
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Financial Management
Progress Billing
Progress billing is the practice of invoicing a client in stages as work is completed, rather than s...
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Purchase Order
A purchase order (PO) is a document issued by a contractor to a supplier or subcontractor that autho...
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Work-in-Progress (WIP)
Work-in-progress (WIP) is the dollar value of work that has been performed but not yet invoiced. For...
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Accounts Receivable
Accounts receivable (AR) is the total amount owed to a contractor by clients for work that has been...
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Break-Even Point
The break-even point is the revenue level at which total income exactly covers total costs, producin...
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Direct Costs
Direct costs are the costs that can be attributed directly to a specific job: primarily labor, mater...
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Cost of Goods Sold (COGS)
Cost of goods sold (COGS) is the accounting category that captures the direct costs of delivering se...
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Contribution Margin
Contribution margin is the revenue from a job or service type minus its variable costs. It measures...
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Performance and KPIs
Revenue Per Technician
Revenue per technician measures how much revenue each field technician generates over a given time p...
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Estimate Conversion Rate
Estimate conversion rate is the percentage of estimates sent to prospective clients that result in a...
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First-Time Fix Rate
First-time fix rate is the percentage of service calls resolved on the first visit, without a follow...
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More Contractor Terms
These concepts are covered in depth in the IRONGRID blog, calculators, and product guides.
Gross Profit Margin
Full guide with formula and benchmarks
Markup vs. Margin
Full guide with conversion table
Labor Burden Rate
Full guide with all burden components
Labor Cost Percentage
Full guide with trade benchmarks
Technician Utilization
Calculator with definition and benchmarks
Average Job Value
Defined in the KPI guide
Invoice Collection Rate
Defined in the KPI guide
Client Retention Rate
Defined in the KPI guide
Job Costing
Defined on the product page
Field Service Management
Full concept guide
Contractor CRM
Defined on the product page
Cash Flow
Covered in the invoicing and cash flow guide