The work in progress (WIP) schedule is one of the most important documents in any bond submission, yet it is often misunderstood or underutilised.
For underwriters, the WIP is not just a list of projects. It is a real-time snapshot of a contractor’s operations, workload, and financial exposure.
What a WIP Schedule Actually Shows
A properly prepared WIP schedule includes:
- all active projects
- contract values
- percentage of completion
- costs incurred to date
- billings and cash flow position
This allows the underwriter to understand not just what the contractor has taken on, but how those projects are performing.
Why WIP Matters in Underwriting
From an underwriting perspective, WIP is critical because it connects financial statements to operational reality.
It helps answer questions such as:
- Is the contractor taking on too much work at once?
- Are projects progressing as expected?
- Is there any indication of financial strain?
For example, consistent underbilling may suggest cash flow pressure, while overbilling could indicate aggressive revenue recognition.
Common Issues with WIP Submissions
WIP schedules often create delays when they are:
- outdated or not aligned with current projects
- incomplete, missing smaller or recently awarded jobs
- inconsistent with financial statements
Even small discrepancies can raise questions and slow down the underwriting process.
How Brokers Can Strengthen WIP Presentation
Brokers can improve submission quality significantly by ensuring:
- the WIP is current as of the submission date
- all active projects are included
- figures align with financial statements
- any unusual variances are explained
Providing a short explanation alongside the WIP can also help underwriters interpret the data more efficiently.
Why This Matters for Brokers
WIP is one of the fastest ways for an underwriter to assess capacity.
A clear and accurate schedule allows for:
- quicker evaluation of workload
- better understanding of project risk
- faster movement toward a decision
If you are working with contractors in Western Canada, having a surety partner who can review WIP and provide immediate feedback can help keep files moving. Western Canada surety support
Conclusion
The WIP schedule is not just a requirement. It is a key tool in understanding how a contractor operates and whether they have the capacity to take on additional work.
When presented clearly and accurately, it can significantly improve the speed and quality of underwriting decisions.
If you would like a second opinion on a WIP schedule or submission, connect with Surwest Surety Source to review your file before going to market:
👉 https://approvedcasualty.com/surwest-surety-source/
