Include commissioning and handover in the WIP cost to finish

Installed does not always mean finished

A project looks almost complete because most equipment is in place. The WIP estimate leaves little cost to finish, yet testing, commissioning and handover still require specialist time. Ask the delivery team and accountant to review those remaining tasks. Physical progress is useful evidence, but it should not be treated as a complete measure of the work and spending still required.

List the actual completion tasks

Imagine a mechanical contractor with installation largely finished but controls testing and documentation outstanding. Identify the required inspections, commissioning visits, certificates and handover information under the job's actual requirements. Check who will perform each task. Do not assume a subcontractor has included return visits or specialist testing unless the agreed scope and practical arrangements support that assumption.

Price the remaining resources

business.gov.au's pricing guidance recommends considering labour, materials and overhead costs. Apply that practical discipline when discussing the remaining effort with the accountant. Include supported specialist charges, attendance and necessary materials. The accounting treatment of WIP needs professional review; a management task list should inform that review without replacing the applicable reporting method or recognition requirements.

Source: business.gov.au: Choose a pricing strategy

Check dependencies that can extend attendance

In the mechanical example, testing may depend on power, access or another trade completing work. Record confirmed arrangements and uncertainties. An unfinished dependency can require an additional visit even if the installation itself is satisfactory. Avoid reducing the allowance simply because the task is near the end of the programme or because the team hopes every test will pass first time.

Separate completion cost from payment timing

Ask what evidence or milestone supports the remaining customer claim and when the money is expected. Keep this cash question separate from estimated accounting profit. A job can have a credible margin while still needing funds for specialists before the final payment arrives. Do not count a hoped-for completion certificate as an issued document or a confirmed receipt.

Update the estimate as tasks close

Record actual completion and costs, retaining any revised assumptions. If the final stage reveals a loss, discuss the operational and financial response promptly. The useful WIP review follows the work all the way through handover, so a nearly finished installation does not conceal a substantial amount of effort that still has to be paid for.