Construction Accounting Questions

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Construction Accounting
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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. ...Read More
Anonymous Contractor
1 answerAdd commentJul 27, 2021
PennsylvaniaConstruction Accounting
There is a company that filed a lien on the property for the amount of $7,650.00. They were contacted by the debtor's attorney and they made an offer to remove the lien for the amount of $7,650.00. The company was then advised to remove and reattach another lien for $27,300.00. This was done because the first lien filed by the first attorney did for March debts only, and the second attorney attached it inclusive of the debts that were accumulated in February. The literature of the sworn statement of the first lien states that: "The total amount due to *** Trucking Service, Inc. for trucking service from March 1, 2019 to present is $7,650.00 plus other costs associated with filing this Lien and giving the requisite notice. This amount represents the balance of the debt owed for under the contract and is true, correct, and just, with all just and lawful offsets, payments, and credits known to Affiant allowed." Now that lien has been removed and another has been attached which states: "After allowing all just credits, offsets, and payments made to Claimant, the amount of $27,300.00 remains unpaid to Claimant under its contract with the Subcontractor. Claimant herein claims a statutory lien against the property, and all removable items located therein, under the provisions of TEXAS PROPERTY CODE SECT 53.001, et seq., to secure payment of said amount." The attorney for debtor states that because there is sworn statement for the balance of $7,650.00 it makes the new lien for the balance of $27,300.00 invalid and void. He even threatened to file a lawsuit for filing an invalid lien. I read the first lien as giving dates of "March 1, 2019 to present", therefore if another lien attached for the balance which is inclusive of debts prior to March should be rendered as legal and binding. Is this not so? Would the lien be valid even if the previous lien attached for a lesser amount was removed and replaced by a lien that included months prior?...Read More
Anonymous Contractor
Waiting for answerAdd commentAug 27, 2019
TexasCollectionsConstruction AccountingLawsuitLien DeadlinesLien ReleasesMechanics LienPayment DisputesRight to Lien
Good afternoon. We have a small interior project $700k; the owner want to deduct $115k from the original scope of work and add a new product that costs 135k. Question what is the correct formula for this deductive change order or dvise for a different formula. $135-$115k = $20 + O&P(15%) = $23k or $135+O&P(15%)-$115k = $155-$115k = $40.25k The new product will tke 12-14 additional weeks for delivery, pushing final completion of the project. We greatly appreciate your advise....Read More
Anonymous Contractor
2 answersAdd commentAug 31, 2019
FloridaChange OrdersConstruction Accounting
What is the standard for billing for pre construction costs?...Read More
Anonymous Contractor
1 answerAdd commentOct 2, 2019
CaliforniaConstruction Accounting
I have a contractor who wants to hold 10 percent retention. But is telling me that I need to be a 100 percent at the 90 percent draw saying the last 10 percent is rention, I'm on the assumption that I should be 100 percent at the 100 percent draw and he can hold the last 10 percent for 45 days...Read More
Anonymous Contractor
1 answerAdd commentOct 3, 2019
CaliforniaConstruction AccountingRetainage
We are a general contractor/construction management group that does projects ranging between $5M and $100M. It's a challenge for us to manage change orders, vendor/sub pay apps, lien waiver collection, submitting owner billing, etc., and generally tracking the dollars & cents & risk as it winds its way through the job. Currently, we leave this to the project managers, who collaborate with the accounting folks in the back office. We're thinking about creating a "project accountant" position to run point on this stuff. What is the best way to think about this position? To set it up? When does it make financial sense to have a position like this? What kind of person fills this role? What would this role report to? Etc....Read More
Anonymous Subcontractor
Waiting for answerAdd commentOct 6, 2019
VirginiaConstruction AccountingCredit ManagementPay Applications
I had a drainage system put in my basement. And I financed the job. However, the finance company released the payment to the contractor before I signed any type of paperwork stating the job had been completed to my satisfaction. All they did was leave a voicemail saying they were going to release the money and released it before I heard the message. I am still getting some water that the contractor is working on. My concern is the clock on my 6 months 0% financing has started before the job is truly complete. I was under the impression the finance company needed a signed release of job completion. ...Read More
Anonymous Contractor
1 answerAdd commentOct 10, 2019
West VirginiaConstruction AccountingConstruction Contract
Hi guys, I'm a Finance manager working withing a fairly large construction and civil engineering business based in London. I've been trying to get the WIP message out and the have been playing around with ways of showing this graphically as this seems to be what the commercial teams seem to follow best. However there doesn't appear to be a way of 'showing' them in a chart / graph that I can think of, nor one which is out there in the public domain. My question is whether you have any suggestions on how best to get this information from the WIP schedule into a meaningful chart?...Read More
Anonymous Contractor
1 answerAdd commentNov 1, 2019
AlabamaConstruction Accounting
Does the contractor have to provide receipts as proof they were not paid and what about labor hours? How does one prove hours put in for labor? ...Read More
Anonymous Contractor
1 answerAdd commentNov 13, 2019
MaineConstruction Accounting
What the stander percentage of mobilization & demobilization from total cost of work...Read More
Anonymous Contractor
1 answerAdd commentNov 17, 2019
KansasConstruction Accounting
How do you allocate overhead expense (G and A)? Do you base it on revenue or actual markup rate that each agency gives you ...Read More
Anonymous Contractor
2 answersAdd commentNov 20, 2019
New YorkConstruction Accounting
Can we bill for retainage on our final invoice or does retainage need to be billed seperately as a final ?...Read More
Anonymous Contractor
2 answersAdd commentNov 22, 2019
TexasConstruction AccountingRetainage
The University awards Consulting Agreements which are 100% reimburseable - essentially cost contracts - do invoices have to be certified no matter the value of the invoice?...Read More
Anonymous Contractor
1 answerAdd commentNov 26, 2019
New MexicoConstruction AccountingPay ApplicationsPrevailing Wages
How do i pay a subcontractor prevailing wage when im getting the prevailing wage? How would he charge me?...Read More
Anonymous Contractor
1 answerAdd commentDec 2, 2019
ConnecticutConstruction AccountingCredit ManagementPrevailing Wages
Customer playing games trying to get a cut off an insurance change order payment....Read More
Anonymous Contractor
1 answerAdd commentDec 13, 2019
ConnecticutConstruction Accounting