Are you tracking and documenting construction costs for your rehabbing or building business?

The pros do it, and so should you. The longer you’re in this business, the more you’ll realize the value of having up-to-date construction costs readily available.

That’s why we rely on a Construction Cost Sheet in The Rehabber’s Playbook! This simple yet powerful document allows you to track construction costs from past projects or other sources, giving you a reliable reference for estimating, budgeting, and making informed decisions. It’s a tool that evolves with you—continuously updated as you grow as a rehabber or builder—and ultimately becomes one of the most valuable assets in your business.

A Word on Documentation in Construction

A cornerstone concept of The Rehabber’s Playbook is - Document Everything. Document your SOPs, your scopes of work, your schedules, your checklists, and of course your construction costs. There’s simply too much in this business to rely on memory alone, especially given the variety of projects you may encounter. The best way to leverage your past experience effectively is through thorough documentation. This practice boosts your efficiency, accuracy, and confidence—and, perhaps most importantly, it enables you to scale a business often considered "unscalable."

Why Is a Construction Cost Sheet So Important?

Saves Time

Many builders can spend hours on budgeting and estimating, all because they are relying on Google searches or phoning a friend to figure out construction costs. A Construction Cost Sheet saves an incredible amount of time by keeping all your cost data organized and easily accessible. No more digging through old receipts or chasing down contractors—all the information you need is in one place, ready when you need it. This means less time spent hunting for numbers and more time focusing on your projects.

Builds Budget Confidence

One of the worst feelings in this business is starting a project with little confidence in your budget. Having a sheet with accurate, up-to-date costs provides peace of mind when setting project budgets. You’re not guessing or relying on outdated estimates—you’re working with solid, real-world data to guide your decisions. This confidence allows you to focus on execution with less worry about blowing your budget.

Informs Better Decisions

Every project comes with its share of critical decisions, and your success in this business depends on making the right ones. The best decisions are made when you’re equipped with accurate, reliable information. Whether you’re choosing a supplier, selecting materials, or comparing scopes of work, having precise data ensures you’re making decisions based on facts—not guesses or assumptions.

Tracks Market Trends

Over time, your Construction Cost Sheet can reveal valuable trends in material or labor costs. Spotting these changes allows you to plan purchases strategically, negotiate better deals with suppliers, and stay ahead of rising expenses. It’s like having a crystal ball for your business.

Streamlines Scaling

If you're growing your business, a well-maintained cost sheet simplifies the process of scaling, hiring, and training others. It provides a clear and organized framework that you—and your team—can rely on. As your operation expands, this blueprint becomes a cornerstone of your efficiency.

Tips for Creating Your Own Construction Cost Sheet

1. Start Early

One reason people hesitate to start a Construction Cost Sheet is the daunting idea of building it from scratch. But the truth is, you don’t need hundreds of entries to make it valuable. When I first started, my sheet had maybe 20–30 costs, and now, years later, it’s grown to over 300. You have to start somewhere—even a dozen documented costs can be a game-changer.

2. Stay Consistent

Consistency is key. Make it a habit to update your costs regularly, either after each project or during your bookkeeping sessions. For us, this happens every two weeks when we’re already documenting receipts and invoices. Others might prefer updating their sheet at the end of a project during reporting. The method doesn’t matter as much as making it a routine—it’s worth the time invested.

3. Document High-End, Low-End, and Average Costs

When tracking costs, be sure to record the range: high-end, low-end, and average. While averages are typically the most useful for budgeting, having a complete range helps you understand variability and make decisions based on project requirements and budget constraints.

3. List Common Construction Costs

Start with the basics. Reflect on past projects and list the most common costs you’ve encountered, even if you don’t have precise data for all of them yet. This proactive approach ensures you’ll be prepared for future projects and gradually build a comprehensive cost sheet.

4. Keep a Folder of Receipts and Invoices

Maintain a dedicated folder—physical or digital—for all receipts and invoices. This not only serves as a backup but also allows you to review past expenses in detail. Linking these receipts directly to your cost sheet can make accessing information even easier.

5. Hire a VA

Managing a Construction Cost Sheet is a task that can easily be delegated. Hiring a virtual assistant (VA) to handle the legwork—like uploading receipts and invoices—can save you time while ensuring your sheet is consistently updated. You simply send the necessary data and let them handle the rest.

6. Browse Suppliers Online

Spend time exploring your favorite suppliers, like Lowe’s, Home Depot, Amazon, or Ferguson, to fill your cost sheet with material prices. This is especially helpful for tracking trends and ensuring you have up-to-date pricing information.

A Little Help From TRP

Getting started on your Construction Cost Sheet doesn’t have to be overwhelming.

To help, we’ve created a free template you can [download by following this link]. While this version isn’t pre-filled, it gives you a clear idea of the costs to track and categories to include. It’s a fantastic starting point for rehabs and new construction projects alike.

For those looking for a more robust solution, TRP members have access to our fully filled-out Construction Cost Sheet, which is updated twice a year to ensure it stays relevant. This sheet covers 95%+ of the costs you’ll encounter and can save you countless hours of work. If you want to take advantage of this resource, [join the TRP Membership today]!

Conclusion 

A Construction Cost Sheet isn’t just a document—it’s a cornerstone of effective financial management for rehabbers and builders. By maintaining one, you can save time, increase confidence in your budgets, make better decisions, and ultimately run a more profitable business. If you don’t already have one, now is the perfect time to start!