Construction Accounting Questions

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Construction Accounting
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Hi. Im working for a company thats dedicated to engineering and makes a lot of proyects of electrical equipment such as elevatotors, electric stands, air conditioner... the company has 25 years of working in the market and have been calculating their indirect costs based on an average of past years. For example, they make an estimate of how much they spent last year in administrative expensess and then include that expense as an indirect cost in the offers we present to our clients. you think this is the best way to do it or can you recomend me a better way? ...Read More
Anonymous Contractor
Waiting for answerAdd commentJun 17, 2021
AlabamaConstruction Accounting
We are in week 19 of reno. The cre Co m es for maybe 3 hours a week to work at this point. My contractor is taking an extremely long time completing my kitchen reno. I have paid him everything but 10% of my contract we still have no windows or counters. He wants me to pay for countertops with remaining money. There are small other things not done also. I feel I should not pay anything more till job is done? Am I correct?...Read More
Anonymous Contractor
1 answerAdd commentJun 6, 2021
PennsylvaniaConstruction Accounting
I am trying to find out if there is a legal document or process that I can provide or go through in order to prevent my subs vendors from filing a lien, when subs have been paid... Legally speaking, if a vendor files a lien or sends an intent notice do they have to provide payment records to me? Do i need to supply payment records if I don't have a Conditional lien waiver? Also, should my company require all CLW's to be signed before releasing payments?...Read More
Anonymous Contractor
3 answersAdd commentMay 20, 2021
TexasConstruction AccountingConstruction ContractLien ReleasesLien WaiversMechanics LienNotice of Intent to Lien
We signed a fix price contract for a new construction. The builder put allowances for tile and septic. We are almost done with the build, there are 5 draw items left. The builder now says the bid price for allowances has changed. That the septic will cost more than he budgeted for in his allowance and he is labeling the difference as a "change order". He bid the septic as an aerobic and we are installing an aerobic and using the subcontractor the builder has chosen. On the tile he quoted $4.5 per sq foot and told me to go buy my tile for no more than $1.5 sq ft and that the other $3 was labor to install. He is using his subcontractor and telling me I have to pay the difference in labor, that it is no longer $3 sqft to install. I have followed all his rules and used his subcontractors. Isn't he responsible for his bid prices. The contract says the bid price is subject to "change orders". The tile is not a change order, it is the original tile from the first email communication we shared. The septic is not a change order, it is the same septic and installer he suggested. Am I responsible for the difference because he called it an "allowance"?...Read More
Anonymous Contractor
4 answersAdd commentMay 24, 2021
TexasConstruction Accounting
for a housing society selling plots on Installment would record down payment as cash / bank unearned rev. c.o.g.s inculde land, and developement charges, Indirect Selling & admin exp ...Read More
Anonymous Contractor
1 answerAdd commentMay 21, 2021
New YorkConstruction Accounting
I work for several entities that are development companies. Additionally, we are the part owner and the GC. We are a small company that has grown rapidly within 5 years. I have received intents to lien from various vendors of our subcontractors, whom have been paid but have not paid their vendors. If i do not have a conditional lien waiver for progress payment executed what do I need to provide the vendors inorder to prevent lien? Our contracts state the subs are responsible for their materials, tools, supplies and equipment costs and that amount is to be included in their bid packages- so when we generate and execute a contract the subs and my company have a meeting of the minds that they are responsible for covering their vendor fees. Am I missing a step? Should conditional lien waivers on progress payments be executed at time of contract execution? Are their any documents I should be providing and having my subs execute in order to prevent liens? ...Read More
Anonymous Contractor
2 answersAdd commentMay 20, 2021
TexasConstruction AccountingConstruction ContractLien ReleasesLien WaiversMechanics LienNotice of Intent to Lien
Given the following information about two bid items in a unit price contract , determine what would be the final payment to the contractor? Item 1 - Excavation: Estimated Quantity = $10,000 c.y; Actual measured quantity = $9,500; Unit Price = $3.00. Item 2 - Backfill : Estimated Quantity = $7,500 c.y ; Actual Measured Quantity = $9,000; Unit Price = $4.00...Read More
Anonymous Contractor
1 answerAdd commentApr 27, 2020
MarylandConstruction Accounting
If my contractor demands 20000 more in order to move on to the end of our new home construction when all we owe him at this point left is 40000 out of 175000 how much of my house should be done at this time? And just a note before the ? They have not really been to my house in over a month because they took on multiple other jobs and put us on hold to start on the neighbors and other houses....Read More
Anonymous Contractor
1 answerAdd commentMay 1, 2021
LouisianaConstruction AccountingConstruction ContractPay Applications
Should we consider opening new bank accounts for the PPP loan? This would help us keep these funds separate. The plan would be to deposit the loan funds into the new account, to get new checks for payroll/direct deposit payroll checks from the new account, etc. An alternative could be to move the money from the new account into our normal account each week for payroll. What is the best practice here, and what should we be concerned about?...Read More
Anonymous Property Owner
1 answerAdd commentMay 20, 2020
CaliforniaConstruction AccountingCoronavirusStimulus
Hello, I have a project using a statement of values. How does the down payment get added to the statement of values to keep the amounts on SOV true and correct and not throwing off the percentages of completion? ...Read More
Anonymous General Contractor
1 answerAdd commentApr 12, 2021
TexasConstruction Accounting
I am interested in getting my contractor license in Louisiana. Growing up, my father always flipped and often built homes with a contractor friend of his and sold those homes as he is a real estate broker. I’m a realtor now too, as well as a full time commercial historical project manager downtown. I hope to supplement my own income by building a few homes a year for profit. That said, I don’t want to drown in GL and WC insurance prices, will those be required even though I will have no employees, I will just be contracting local subs?...Read More
Anonymous Contractor
1 answerAdd commentApr 11, 2021
LouisianaConstruction Accounting
In doing our tax return filing, I've noticed some discrepancies between the 1099s sent to our subs versus our executed subcontract amounts (some of which lacked detail and formality to begin with). If anyone has a recommendation for an external auditor familiar with construction accounting to look into our financial departments documents and processes, please let me know. ...Read More
Anonymous General Contractor
Waiting for answerAdd commentMar 25, 2021
MarylandConstruction Accounting
My husband has a small construction business mainly himself and IF he needs help he hires other self employed contractor which receive 1099’s. He really doesn’t have payroll per say but has construction bills that need paid. Would he qualify for the “up to” $10000 grant? Also I read somewhere that self employed contractors could draw unemployment. Please advise. Thanks...Read More
Anonymous Contractor
1 answerAdd commentMar 30, 2020
IllinoisConstruction AccountingCoronavirusStimulus
Hello. I had a contractor file a lien for work was not performed. In addition removed material off my property. I was forced to finalize the remaining work on my own. My question is the theft of materials considered conversion? As well, I have a detailed accounting of materials removed, work performed that contractor did not finish. To date, a lien was filed for $53,000 with no lawsuit. The frivolous lien was filed with a round number but not any invoices or any detailed accounting We have a thorough narrative and proof of work completed. How can someone perfect a lien in Montana without supporting accounting? In addition we are a brand new RV park with lost income due to the contractors dishonesty, and delay in opening.We have made continuous requests-demands for an accounting. Can someone just make up a false lien and file it with no accounting? Any advice would be much appreciated, In addition to a SW Montana attorney that specializes Mechanic Lien law-consruction litigation? Thank you for your time in advance. Matthew. Kingincda2@gmail.com...Read More
Anonymous Contractor
Waiting for answerAdd commentJan 28, 2021
MontanaConstruction AccountingConstruction ContractLien DeadlinesMechanics LienRight to Lien
I am a "safety engineer" with a GC. My primary job functions consist of assessing risk with our superintendents and recommending solutions to them. However, I do not have the authority to make policy or change our company policy; I am only permitted to interpret the policies as written. I do not meet the executive, computer, outside sales, or computer exemptions. Is my job considered exempt? My employer has never paid me overtime. What recourse do I have if I am not exempt?...Read More
Anonymous Contractor
1 answerAdd commentJan 15, 2021
ArizonaConstruction Accounting