Monthly Project Financial Close Checklist

Pull signed backlog from Vantagepoint, layer in weighted pursuits from the CRM at appropriate go-get probabilities, and reconcile against the board-approved annual plan. Note any pursuits where the proposal deadline slipped this month — they fall out of the next quarter even if probability didn't change.

Compare actual chargeable hours against discipline targets (typically 65-75% for senior PEs and PMs, 80-90% for staff engineers and designers). Flag any discipline running more than 5 points below target — that's a near-term realization risk.

For each active project, compare estimate-to-complete against remaining contract value. Lump-sum projects with ETC exceeding remaining fee are the loss-projection candidates that need PIC attention this cycle.

Confirm planned spend on Autodesk AEC Collection seats, Bentley SELECT, structural analysis licenses (ETABS, RAM, RISA), survey and field equipment, and BIM workstations. Capital items above the firm's threshold need overhead-allocation treatment for FAR audit purposes.

Run the standard month-end WIP report grouped by PIC and project type. Verify all timesheets are submitted and approved before the report runs — late entries skew percent-complete and force a restated WIP next month.

For each active lump-sum and cost-plus-fixed-fee project, the PM updates EAC. Compare to the original budget and the prior month's EAC. Material upward revisions trigger a project recovery review with the PIC.

A negative variance is any project where current EAC exceeds remaining contract value, or where realization rate has dropped below 0.85. These are recovery candidates and need a written PM action plan before sign-off.

For each flagged project, the PM presents the cause (scope creep, fee underestimation, productivity issue, sub overrun) and a recovery plan — change order in process, additional services memo to client, or a written loss-acceptance with PIC approval. Document the disposition in the project file.

Realization = net revenue / standard billable revenue at billing rates. Effective multiplier = net revenue / direct labor cost. Track both at the firm and PIC level. Sustained realization below 0.90 usually means rate-card erosion or excessive write-downs at billing.

Issue the standard monthly packet to each PM: their project list with budget, ETC, EAC, variance, percent complete, and unbilled WIP. PMs have 48 hours to respond with corrections before billing runs.

Pull the standard 0-30 / 31-60 / 61-90 / 90+ aging from Vantagepoint, grouped by client and PM. Public-sector clients commonly run 60-90 days as a matter of course; private-sector aging past 60 is the warning band.

For each 60+ day invoice, confirm the PM has reached out to the client AP contact within the last two weeks. Document any disputed amounts and the resolution path. Note any invoices the client claims they never received — that's usually a billing-address or portal-submission failure on our side.

Controller and PIC jointly review each 90+ account. Options: PIC-to-client escalation letter, work stoppage notice (per contract terms), conversion to attorney demand, or write-down with reserve adjustment. Prompt-pay statutes vary by state — check the contract's governing-law clause before any formal demand.

Layer in expected collections from current AR by aging bucket, planned billings from unbilled WIP, payroll runs, sub payments, lease and software, and tax obligations. The 13-week view is the early-warning system for line-of-credit draws.

Run the unbilled WIP report and resolve every aged item — PM approval to bill, write-down with reason code, or hold with documented justification (typically pending change order or milestone). Stale WIP older than 90 days needs a quarterly write-down review.

Pull the license-tracking roster and confirm every engineer who sealed deliverables this period held active licensure in the relevant state on the date of seal. Lapsed renewals during the seal window are unauthorized practice — surface immediately to the General Counsel and the affected EOR.

Federal-funded projects under FAR Part 31 require documented daily time entry. Run the missing-timesheet and late-entry exception report from Vantagepoint and route any exceptions to the supervisor for written explanation. Repeat offenders go to the HR escalation list.

Pick a sample of projects opened in the period and verify contract value, fee type (lump sum / T&M / cost-plus), billing terms, and rate schedule in Vantagepoint match the executed AIA B-series, EJCDC, or owner agreement on file. Mis-configured projects are the leading source of billing disputes.

For firms with state DOT or federal contracts subject to FAR Part 31 overhead audits, reconcile unallowables (interest, entertainment, alcohol, lobbying, bad debt, executive comp above the cap) out of the pool monthly rather than scrambling at audit time. Maintain the supporting schedule alongside the trial balance.

Controller and CFO review the consolidated packet: P&L, project performance summary, AR aging, cash forecast, utilization and realization metrics, and any flagged compliance exceptions. Sign-off authorizes distribution to ownership and the bank reporting package.