Daaxit, a provider of fractional CFO services for contractors, has published a new guide designed to help construction leadership teams transform key performance indicators (KPIs) into a monthly management scorecard. The resource, announced on August 3, 2026, aims to address a common challenge in the industry: collecting financial and project data without a structured process for review, ownership, and action.
The guide emphasizes that a scorecard should clarify responsibility rather than add reporting layers. Aaron Mills, Founder and CEO of Daaxit, explained, “I don’t believe in creating extra layers of reporting. That’s why a scorecard should make responsibility clearer, reducing the need for more reporting. The purpose is to show what changed, who owns the result, and what action needs to follow during the next review cycle.”
The proposed scorecard organizes indicators into several categories, beginning with financial metrics that reflect overall business health, such as revenue, gross profit, gross margin percentage, net profit, EBITDA, cash flow, accounts receivable, debt, and working capital. It then covers job-level indicators like estimated margin, current margin, labor productivity, work in progress, underbilling, overbilling, change orders, and cost to complete. Reviewing these measures while projects are active provides a more current view than waiting until job closure.
Daaxit treats cash flow as distinct from reported profit, highlighting measures such as cash forecasts, receivables aging, retainage, payroll requirements, vendor obligations, debt payments, and billing position. This helps explain why a profitable contractor might still face liquidity pressure. Similarly, backlog is evaluated separately from total contracted work, with attention to expected margin, labor availability, project timing, customer payment terms, material exposure, and capacity to perform the work. This distinction helps leadership teams differentiate between activity and financial strength, as a growing backlog can increase working-capital demands and operational risk.
Mills recommends assigning an owner to each major KPI and conducting reviews on a regular monthly schedule. Financial indicators might be owned by the CFO or finance lead, while operational metrics like labor productivity, change-order status, billing, collections, and project performance may involve operations, project management, accounting, or department leaders. The scorecard format should track targets, current results, prior-period results, and required follow-up actions, enabling teams to identify trends and document responsibility without expanding the scorecard unnecessarily.
The framework is adaptable across contractor business models. General contractors, builders, and specialty trades can tailor the categories to their needs. Service contractors may focus on technician productivity, dispatch performance, service agreements, and fleet use, while project-based contractors may emphasize work in progress, cost to complete, underbilling, retainage, and backlog margin. The guide also suggests segmenting performance by division, location, project type, estimator, project manager, or crew when necessary to pinpoint where results are generated and where corrective action is needed.
This resource is significant for the construction industry because it addresses a common gap between data collection and decision-making. By providing a structured approach to monthly accountability, Daaxit aims to help contractors improve financial clarity, cash flow visibility, and job-level profitability. The full framework is available at Daaxit.
