Every contractor deals with callbacks and punch lists — but if it’s happening too often, you’re not just losing time. You’re losing real money.

Rework means you pay your team again for work that should’ve been done right the first time. You might also eat material costs, rental fees, or deal with client dissatisfaction — all while taking crew hours away from other billable jobs.

And here’s the kicker: rework doesn’t show up clearly in your P&L unless you’re tracking it. It hides in gross margin erosion, job delays, and team burnout.

Real World Mistake & Lesson: A painting contractor I worked with thought they had a “quality issue.” Turns out, 1 out of every 5 jobs required significant rework — averaging 6 hours per job. Over a year, that added up to more than $50,000 in labor waste.

We implemented a job signoff checklist and instituted a “zero rework bonus” per crew. Quality went up, and gross margins improved within 90 days. The crew was happier too — no more going back to fix what should’ve been right the first time.

 Pick up your free copy of my new book, “The 7 Minute Conversation-How to Hear the Story Your Small Business Financial Statements Are Telling You-CONTRACTOR EDITION”.  Go to www.7MinuteConversationBook.com

Ready to find out where your cash and profits are really going? Book your free 15-minute Profit and Cash Flow Call with me. No pressure. Just real clarity. I’ll help you see where your money’s hiding — and what to do about it. Schedule at www.CashFlowCallWithLarry.com