What it is
A contractor’s planning memo should say where profit can move: the estimates at completion, change orders and claims, cost cutoff and loss contracts.
The memo records the contract profile, a risk table with the assertion and response, controls over job cost and estimating, the jobs chosen for testing and the team.
When to use it
- Annual planning for a contractor audit.
- Contractors with margin fade or high backlog.
- When a surety or lender relies on the financial statements.
What’s inside
- Contract types, customers, backlog and bonding
- Risk table for estimates, change orders, job cost and loss contracts
- Controls over estimating and billing
- Job selection, site visits and timetable
Standard cited
This template follows ASC 606 / AU-C 315, 540. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 315 explained.
Questions
Why are input methods mentioned?
Revenue recognized over time using costs incurred relative to total expected cost is an input method (606-10-55-20), so the estimate of total cost is the main estimate.
Does it replace the general planning memo?
It supplements it for industry risks. Use both.
Related templates
- Audit Planning Memo (AU-C 300)
- Construction Job Cost and Percent Complete Audit Program
- Construction WIP Schedule (Over / Under Billings)
- Construction Estimate at Completion and Fade Analysis
Last updated 11/06/2026. All free templates.