Menu

Work in Progress

PennsylvaniaConstruction Accounting

Do all constuction companies have to use a WIP Schedule in their accounting process? I'm a sub contractor. We seal and cut concrete we charge by the lineal foot. My cost are labor, equipment, diamond blades and mobilization. (Trucks, fuel and travel) We go over the WIP monthly and sometimes I feel like we are just guessing when we go over particular jobs.

1 reply

Jul 27, 2021
Unfortunately, the vast majority of contracts between owners and general contractors base progress payments on the work percentages that are completed during the pay periods covered in the contractor's applications. This means that the GCs have to pass those terms through to their subcontractors or require them to tie their pay applications to work that is in place (i.e., finished) or completion percentages.
0 people found this helpful
Helpful