Connect revisions, subcontract work and agreed changes to project contribution. Start with a completed job sheet, supplier quotes and a crew schedule. Each example below uses hypothetical values you can replace.
Revision Round Cost
Price the delivery cost of additional review cycles.
Revision cost = rounds × people × hours × hourly cost
Show example inputs and result
| Extra revision rounds | 3 |
|---|---|
| People involved per round | 2 |
| Hours per person per round | 2 |
| Loaded hourly cost | 45 |
Result: 540 .
Include coordination in recorded hours and do not assume extra rounds are contractually billable.
Open revision round costScope Change Quote
Price a separately agreed change in scope.
Extra quote = (hours × hourly cost + materials + fees) / (1 − margin)
Show example inputs and result
| Extra labour hours | 6 |
|---|---|
| Burdened labour cost per hour | 40 |
| Extra materials | 150 |
| Other extra cost | 30 |
| Target margin | 25 % |
Result: 560 .
Unpriced changes consume labour and materials without raising revenue. Record the extra scope and obtain agreement before using a quote.
Open scope change quoteSubcontract Quote Margin
Check retained margin on work delivered by a subcontractor.
Margin = (quote − subcontract charge − coordination cost) / quote × 100
Show example inputs and result
| Customer quote | 3,000 |
|---|---|
| Subcontract charge | 2,000 |
| Internal coordination cost | 250 |
Result: 25 %.
Include coordination, inspections, customer service, and expected rework when those costs are yours.
Open subcontract quote marginDelivery Backlog
Translate confirmed work into a simple backlog duration.
Backlog weeks = outstanding sales / weekly completion capacity
Show example inputs and result
| Confirmed outstanding sales | 60 |
|---|---|
| Completed sales per week | 12 |
Result: 5 weeks.
No. It is an average workload ratio. Actual completion depends on sequencing, resources, and job duration.
Open delivery backlogError Prevention Break-Even
Find how many costly mistakes a control needs to prevent.
Errors to prevent = ceiling(prevention cost / cost per error)
Show example inputs and result
| Monthly prevention cost | 500 |
|---|---|
| Fully assigned cost per avoidable error | 125 |
Result: 4 errors per month.
Use avoidable cash or capacity costs. Do not count theoretical opportunity revenue as collected revenue.
Open error prevention break-evenUse the results in your plan
For a welding shop business, review metal, consumables, and machine time across the complete workflow. Use one consistent period and delivery unit: a fabrication job. Compare the assumptions with recorded outcomes after delivery, then update the estimate.
Explore all relevant welding shop calculators