Daaxit, a provider of fractional CFO services for construction companies, has published a new educational resource designed to help contractors use key performance indicators (KPIs) to strengthen financial and operational accountability. The guide, released on August 3, 2026, focuses on how leadership teams can build a structured scorecard that aligns company goals with measurable results.
The resource addresses a common challenge in the construction industry: companies often collect extensive financial and project data but lack a consistent process for reviewing it, assigning responsibility, and acting on the insights. Daaxit's framework categorizes the critical indicators into financial, job-level, cash flow, and backlog metrics, providing a comprehensive view of business health.
The guide emphasizes that financial indicators such as revenue, gross profit, net profit, EBITDA, cash flow, accounts receivable, and working capital reflect the overall condition of the business. Job-level metrics, including estimated margin, labor productivity, work in progress, under/overbilling, and change orders, offer a more current perspective while projects are still active. Daaxit's founder and CEO, Aaron Mills, notes, "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."
Cash flow and backlog are treated as separate areas of focus. The guide highlights that cash flow can be influenced by receivables aging, retainage, payroll requirements, and vendor obligations, which may explain why a profitable contractor faces liquidity issues. Similarly, backlog quality depends on expected margins, labor availability, project timing, and payment terms. Mills emphasizes that a growing backlog may support future revenue but also increases working-capital demands and operational risk if not carefully managed.
To implement the scorecard effectively, Daaxit recommends assigning an owner to each KPI and reviewing results monthly. Financial metrics typically fall under the CFO or finance lead, while operational metrics like labor productivity and change orders involve project managers and department heads. The template includes targets, current and prior results, and follow-up actions, enabling teams to track trends and document accountability without overcomplicating the process.
The framework is adaptable across contractor business models. Service contractors may prioritize technician productivity and dispatch performance, while project-based contractors focus on work in progress and cost to complete. The guide also suggests breaking down data by division, location, or project type for deeper insights. The full resource is available at Daaxit.
Mills describes the scorecard as a management routine rather than a one-time dashboard project. Its value depends on consistent data, regular reviews, clear explanations of variances, and follow-through on actions. By integrating this approach, contractors can enhance decision-making and financial transparency, ultimately improving profitability and cash flow management.
