VG Home Buyers · Financial Controls

How Every Dollar Gets Accounted For The cost tracking system behind every renovation

Updated 2026-05-27 Properties 10 Active System 3-Tier · Cost Code → Segment → Work Order
At a Glance
Cost Code Categories
228
atomic line items
Budget Segments
39
32 construction + 7 deal
Work Orders
54
per property · P1–P3
Active Properties
10
simultaneous renovations
RFW Authorization
15
issued to date
Tracking Source
QuickBooks
live · all properties
Section 1 — The System

Three Tiers, One Source of Truth

Every dollar that flows through a VG renovation is captured at three levels of resolution: the line-item detail that describes exactly what was purchased, the budget category that tells us how the spending compares to plan, and the work order that shows which contractor was authorized to do that scope.

Tier 1 · Most Granular
Cost Code
A specific category for a type of purchase — materials, labor, or services. Every expense in QuickBooks is tagged to a cost code. This is how we know exactly what we bought, not just how much we spent.
Examples
52.1 Framing Materials
52.2 Framing Labor
63.0 Plumbing Labor
72.2 Hardwood Flooring
228 active cost codes
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Tier 2 · Budget Level
Segment
A budget category that groups related cost codes. Segments are how we set budgets and measure performance — actuals vs. plan, in real time. The construction actuals dashboard is organized by segment.
Examples
52 Framing
63 Plumbing
72 Flooring
75 Painting & Stain
39 segments (32 construction + 7 deal costs)
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Tier 3 · Operational
Work Order
A formal assignment issued to a contractor defining their scope, responsibilities, and authorization to bill. Every work order maps 1-to-1 with a budget segment. When a contractor invoices, their bill is tagged to their work order — connecting cost to authorization.
Examples
P1W06 Framing
P2W02 Plumbing
P3W03 Flooring
P3W08 Painting
54 work orders · phases P1, P2, P3
"What exactly was purchased?"
"Is this on budget?"
"Who was authorized for this?"
How it flows in QuickBooks
Vendor Bill Received → Tagged to Work Order Sub-Customer → Line Items Tagged to Cost Codes → Rolls Up to Segment Budget Row → Appears on Actuals Dashboard
Section 2 — The Project Map

54 Work Orders Across Three Phases

Every property VG renovates runs through the same 54 work orders, organized across three construction phases. Each work order is a defined scope of work with a dedicated budget and a named contractor. Nothing gets built without a work order; nothing gets paid without one.

Phase 1 — Structure Site · Demo · Envelope · Rough Systems
P1W01a Site Management
P1W01b Tree Removal
P1W02 Utility Modification / Sewer Systems
P1W03 Demolition
P1W04 Site Work
P1W05 Foundation
P1W06 Framing
P1W07 Roofing
P1W08 Windows & Exterior Doors
P1W09 Interior Stairs
P1W10 Siding & Shutters
P1W11 Gutters & Leaders
P1W12 End of Phase 1 Handoff
Phase 2 — Systems MEP · Insulation · Drywall · Exterior
P2W01 Pre-Takeover Walkthrough
P2W02 Plumbing
P2W03 HVAC
P2W04 Electrical
P2W05 Security & Technology
P2W06 Fireplaces
P2W07 Insulation & Soundproofing
P2W08 Drywall
P2W09 Exterior Carpentry
P2W09b Exterior Masonry
P2W10 Landscape & Grounds
P2W11 Yard Fencing
P2W12 Driveway
P2W13 End of Phase 2 Handoff
Phase 3 — Finishes Tile · Flooring · Cabinetry · Paint · Punch
P3W01 Pre-Takeover Walkthrough
P3W02 Tile Installation
P3W03 Flooring (Non-Tile)
P3W04 Cabinetry
P3W05 Interior Doors
P3W06 Closet Carpentry
P3W07 Basic Trim
P3W07a–j Specialty Trim Variants (coffered ceilings, wainscoting, shiplap, built-ins, beams…)
P3W08 Painting & Wallpaper
P3W09 Countertops & Stone
P3W10 Stain Finishing
P3W11 Backsplash
P3W12 Interior Accessories
P3W13 Door & Cabinet Hardware
P3W14 MEP Finishes
P3W15 Shower Glass & Mirrors
P3W16 Appliances
P3W17 Final Punch List
Deal Cost Segments Tracked alongside construction — total deal economics visible in one place
12Buying Costs
13Financing
14Holding Costs
93Sale Preparation
95Other Expenses
96Selling Costs
99Sale Proceeds
Section 3 — How a Bill Gets Tracked

From Invoice to Dashboard in Four Steps

When a contractor submits an invoice, it doesn't just get paid — it gets categorized and matched against the authorized scope before it ever appears on the actuals dashboard.

① Bill Arrives
Contractor Invoice
Hector's Framing LLC submits an invoice for work completed at 185 Fernwood.

Line 1: Framing materials — $12,400
Line 2: Framing labor — $26,000
Total: $38,400
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② Matched to Work Order
Authorization Check
The bill is entered under Hector's QB sub-customer, which is tagged to his work order for this property.
P1W06 Framing
This confirms the work was formally authorized before billing.
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③ Cost Codes Applied
Line-by-Line Detail
Each line gets a cost code:

52.1 Framing Materials → $12,400
52.2 Framing Labor → $26,000
Segment 52 · Framing
Materials vs. labor is now distinguishable for all future reporting.
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④ Dashboard Updated
Actuals vs. Budget
The actuals dashboard updates instantly. Framing segment shows:
Live · No Manual Entry
Every property's framing spend visible in one view.
185 Fernwood · Segment 52 Framing — Budget vs. Actuals
$38,400 spent
$0 Budget: $45,000
Actuals to date: $38,400  ·  85% of budget consumed $6,600 remaining (14.7% under)
Section 4 — Authorizing Extra Work

Request For Work — the Change Order System

Sometimes conditions on site require work that was never in the original plan. VG uses a formal Request For Work (RFW) process to ensure that any scope added beyond the standard work orders is reviewed and approved by ownership before any contractor gets authorization to bill for it.

① Discovery
PM Identifies Unplanned Scope
Something surfaces on site that wasn't in the original WO — a structural issue, a missed demo item, an owner-directed change.
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② Request
PM Submits RFW to Ownership
The PM documents the scope, cost estimate, and recommended contractor using the RFW form. No work begins until ownership responds.
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③ Authorization
Ownership Approves & Issues Number
Ownership reviews and approves. An RFW number is assigned and a QB sub-customer is created — this is the contractor's authorization to proceed and bill.
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④ Tracked Separately
Bills Land in RFW Line on Dashboard
All spending under this RFW is tracked separately from the standard WOs, so original budget vs. change order spend is always distinguishable.
Example · 185 Fernwood
Demo contractor missed attic insulation removal → PM submits RFW to ownership → RFW#04 Issued & Approved → QB: "RFW#04 Remove Existing Attic Insulation" → Bill tracked · dashboard updated