The Weekgrade Twelve

Standard v1.0 · 4 September 2026 · Print this page for your file

3 of 12 reach Verified at Step 1

Give this to your controller before the fit call

Twelve operating conditions, each with a written formula, a direction, a default threshold, the inputs it needs, and — the part most methodology documents leave out — the highest evidence rung it can honestly reach. Publishing that last column costs us something. Three of the twelve reach Verified on the three sources in a Step 1 engagement, and a fourth does for closed jobs only. The rest need a source you have not sent us yet, and we would rather say so here than let a brief imply more certainty than the evidence carries.

How to read this

Column	Meaning
Formula	The default definition. Agreed with your controller at onboarding, and then held steady, because a definition that moves makes the trend meaningless.
Direction	Whether higher or lower is better, or whether the number belongs inside a band.
Default threshold	Where the condition becomes an exception worth your attention. A starting point, not a rule about your business — thresholds are set per client and recorded.
Rung at Step 1	The highest rung reachable from job cost detail, general ledger detail and payroll by job alone. Calculated is arithmetic. Unverified is one source, with no recommendation attached. Verified means it agrees across at least two independently maintained sources, exceptions resolved or disclosed, and signed.

The Twelve

#	Condition	Default formula	Direction	Default threshold
01	Projected gross margin by job	(contract + approved COs − cost to date − estimated cost to complete) ÷ (contract + approved COs)	Higher	≥ 2 pts below as‑bid
02	Labor variance by job	(actual burdened labor ÷ earned labor budget at % complete) − 1	Lower	± 10%
03	Unsigned change‑order exposure	Σ cost of work performed on changes not yet signed	Lower	> 2% of contract
04	Days to bill	mean(invoice date − work complete date)	Lower	> 14 days
05	Unbilled completed work	cost to date + earned margin − billings to date, by job	Band	> 5% of contract
06	AR over 60 days	AR aged > 60 ÷ total AR; plus largest single customer share	Lower	> 15%
07	Backlog weeks	contracted work not yet performed ÷ trailing 8‑week cost burn	Higher	< 6 weeks
08	Crew and technician utilization	billable hours ÷ paid hours	Higher	Set per division
09	Overtime share	overtime hours ÷ total hours, by division	Lower	> 8%
10	Callback and rework rate	jobs requiring a return visit ÷ jobs completed	Lower	> 4%
11	Recurring revenue coverage	monthly recurring service revenue ÷ monthly fixed overhead	Higher	< 0.6
12	Weeks of cash	(cash + collections due in 30 days − payables due in 30 days) ÷ weekly cost burn	Higher	< 8 weeks

What each one needs, and what it can prove

#	Required inputs	Rung at Step 1	Principal limitation
01	Contract and CO values · job cost · management's cost‑to‑complete	Verified (closed) · Calculated (projected)	The cost‑to‑complete estimate is management judgement, not evidence. A projection can never rise above Calculated, and we label it as such every time.
02	Payroll by job · job cost · labor budget	Verified	Actual hours tie across two sources; the budget is single‑source. The variance is only as good as the estimate it is measured against.
03	Change‑order log · job cost · billing	Unverified	Most CO logs live in one system, often a spreadsheet. Reaches Verified only once the log ties to billing.
04	Work‑complete dates · invoice dates	Unverified	Invoice dates are in the general ledger, but work‑complete dates live in the field or project system, which is not in scope at Step 1. Reaches Verified as soon as that system is added.
05	Job cost · billings · contract values	Verified	Sensitive to the percentage‑of‑completion method your accountant uses; we adopt yours rather than imposing one.
06	AR aging · general ledger AR control	Unverified	The aging and the control account usually come from the same system, so they are one source. Verified needs an independently maintained record.
07	Contracted backlog · cost burn	Unverified	Backlog is typically maintained in one place and is the number most often stale. We report its age alongside it.
08	Payroll paid hours · job cost billable hours	Verified	Definitions of "billable" vary by division. Agreed once, then held.
09	Payroll only	Calculated	Single source by nature. It is arithmetic on your payroll, and we do not dress it up as anything more.
10	Service or dispatch system	Unverified	Depends entirely on return visits being coded as callbacks. Where coding is inconsistent we say so rather than publishing a flattering rate.
11	Service agreement schedule · general ledger overhead	Unverified	Overhead is in the general ledger, but the agreement schedule is maintained elsewhere and is not in scope at Step 1. Renewal dates are frequently its weakest field.
12	Bank · AR · AP · cost burn	Calculated at Step 1	Reaches Verified only when a bank record is in scope, because the bank is the one source genuinely independent of your accounting system.

Governance

Rule	How it works
Agreeing definitions	At onboarding your controller confirms which definitions fit your business. Any variation from this standard is written down, dated, and travels with the figure.
Holding them steady	Once agreed, a definition does not change mid‑engagement. A definition that moves makes a trend meaningless, and a moving definition is the easiest way for a report to flatter itself.
Changing one	In writing, with the reason and the effective date, and the brief shows both the old and new basis for one period so you can see the seam.
Versioning	This standard is versioned and dated. Your engagement records which version applies. We do not silently revise it.
Rung discipline	A figure never rises above the rung its evidence supports, whatever the deadline. If a source is missing this week, the line is labelled and the recommendation is withheld.

What this is not

This is an operating standard, not an accounting standard. It is not GAAP, it does not replace your accountant's percentage‑of‑completion method, and it is not an audit, review, compilation or attestation. Weekgrade is not a CPA firm. The thresholds are defaults for a $3M–$15M specialty contractor and are not benchmarks derived from a peer study — we have no peer dataset and will not pretend otherwise.

Where a condition cannot reach Verified on the sources in scope, that is a statement about the evidence available, not a judgement about your business.

The Weekgrade Twelve · Standard v1.0 · 4 September 2026
Questions, or the current version for your file: hello@weekgrade.com
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