A project margin review compares the economics sold with the economics delivered. Use a consistent cost definition so an apparently successful project does not hide unrecorded labor, rework, or subcontractor expenses.
Download the editable CSV worksheet. Open it in your spreadsheet application, keep the instructions, and complete the blank entry, owner, due date, and evidence columns. This is a blank planning tool; the example below is illustrative.
When to use this worksheet
Use it with the manager who owns this workflow and one person who performs the work. Bring a recent completed case and a recent exception. Compare the worksheet with those records before adopting it as a team standard. If an existing system already stores these details, use its fields rather than maintaining two competing records.
Template fields and completion checklist
| Field | What to record |
|---|---|
| Revenue basis | Use a consistent project revenue figure and timing convention. |
| Delivery labor | Record actual hours and an agreed internal cost rate. |
| External costs | Include subcontractors, materials, and project-specific purchases. |
| Rework | Separate correction effort from planned delivery. |
| Scope changes | Link approved additions and unpriced extra work. |
| Variance explanation | Assign a cause and an owner for the next pricing or delivery change. |
How to put the process into practice
Agree with finance on the meaning of project margin and which costs belong in it. Do not compare one project's gross margin with another project's fully allocated profit.
Review hours and purchases while the project is active. Waiting for final invoicing makes it harder to correct scope, staffing, or supplier choices.
Compare the estimate with actual delivery by work package. Feed recurring differences into future estimates and scope language.
Worked example
Illustrative example: a $20,000 project has $9,000 in delivery labor and $3,000 in external costs. Under that defined direct-cost basis, contribution is $8,000, or 40%. An additional $2,000 of unrecorded rework would reduce it to 30%. Neither figure includes general overhead unless your chosen method allocates it.
Common mistake to avoid
Treating an owner's unpaid delivery time as free can make a service look scalable when it relies on hidden labor. Record the time even if finance reports its cost separately.
What to measure after implementation
Compare quoted and actual hours, direct margin under the agreed definition, and unapproved scope effort. Investigate variance before imposing a blanket price increase.
Review the first completed worksheet
Before expanding this process, have the responsible manager check one completed record against the original evidence. Confirm that another team member can understand the next action without asking the author to explain it. Record any missing information as a revision to the worksheet. Choose a review date based on how often the workflow runs; a weekly process gives feedback sooner than a quarterly one.
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