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Construction Accounting Questions
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Construction Accounting
All States
1.How does a construction company that builds and later sales houses on installments recognize its income?
2.Which type of Accounting software is idea for this type of business for COA setup?
Thank you and Waiting.
CaliforniaDoes it matter if I figure 25% overhead and 5% profit , compared to 10% profit and 15% overhead ?
Is there a difference that will hurt my business ?
CaliforniaHello, I just recently built a house in Texas. To keep it simple, we found a contractor we liked and vetted and paid them to build our house. At the end of the building, we were happy with the work they had done and payed the final installment. About 8 months later we are discussing with our CPA about making tax write-offs since we are using it as a business. He agrees we can make tax write-offs for certain expenses. We (he) examine the books and realize we were double-billed for certain building materials for the house. The total double-billed was around $35,000. My question is how do we go forward with this to get our over-billed money back? Thank you very much!
TexasHello. I’m closing on a home with an allowance from the seller to do work before I move inside. Under contract it says that the seller paid the money to escrow to be disbursed by the attorney to the buyer. My impression is that the attorney will pay me the allowance at closing. What does this mean ?
AlabamaI'am social work student, we have an project proposal on constructing an youth center but we didn't know how much the budgetary materials for that. The youth center is about 70sq. Meter in for that we decide that 2room for office. Can you help me how much the budget for materials.
CaliforniaI work for a GC. When it comes to allowances in the contract - would the client only get a change order to sign if the amount ends up being more than the allowance already in the contract?
Arizonaso we (our company/not people) are buying out a company and we are creating another company but the same people who are selling us the company are 50% owners in the new company. They are under the impression that we (my brother and I) owe them 5 million and not the company. While we see that as an investment that should be paid through out the success of the new company and written into the operating agreement. Can you please help me find an alternative to this last snag in the deal.
IllinoisDuring the construction of substructure, the piling contractors had to self-isolate due to COVID for 2 weeks and there was a calibration issues with piling rigs which caused a total delay of 4 weeks. Re-allocate the resources and make appropriate change to the project plan. Also, can you justify your choice of course of action and how impact the overall project?
New YorkMy builder hired a substandard concrete contractor. They have been working on my home 6 months and foundation is still not finished. 1 to 3 workers show up for 1 to 3 hours , 1 to 3 days per week. They have left trash on lot the entire time, dumped another 2 - 3 tons. Removed most after I raised sand. Builder does not have any control of contractors. I've been met with months of delays. I have zero confidence in concrete contractor and now builder. There are several defects with the foundation that may be correct, but contractor hasn't made effort to correct. The contract is very vague but says work will be performed in a "Substantial Workmanlike Manner" In my opinion this has not been met.
MissouriCan my contractor retain my entire deposit and charge an additional $22K for “correspondence and 3 meetings” before a single nail has been hammered at my property? I have not received, purchased or approved any materials from him b/c he tried to increase my contract by $66k prior to starting any work, to make up for lumbar costs. (My contract does not allow for this). Going through my zoning committee, it was discovered he had incorrectly estimated costs (he was removing my existing chimney on a oil burning heating system that is going to be staying in the home) which is now going to need to be built up two stories for a second floor addition. Electrical work was not included at several thousands of dollars. And he refused to give me pricing unless I accepted a formal change order for this work, which I wouldn’t. I decided I could not proceed with an 8 month home improvement project with him, so he refused for almost 2 months to communicate with my attorney about cancelling the contract. He states that he will NOW do the job for the previously contracted price point (except for the chimney, electrical, etc) or is demanding that he keep my $50k deposit and an additional $22k for “expenses”. I have also discovered from several of his vendors, that they will no longer work with his company b/c he requested that they write fake online reviews posing as customers and they refused. His contract has small line typing saying he can sue you for $10,000 every time you write something negative about him online. Many of the reviews I relied on to vet him I now realize were not real reviews on Angi’s list and I feel very deceived.
New YorkI am custom building a home. The lumber allowance for framing in the contract was $115,000. I just got an email from my builder that, due to lumber costs increases, the actual cost came in $65,000 more than the allowance. The house is already framed. He did not come to me first to inquire if I wanted him to go ahead and purchase the materials given the high increase in costs. He did not give me the opportunity to make a decision as to whether or not I wanted to pause the building process until lumber was more reasonably priced. Now he is telling me I am fully responsible for the additional $65,000 which is a 56% increase over what is in the contract. Do I have any recourse here or do I have to eat this kind of added charge? It's a huge amount of money I was not expecting to spend.
TennesseeMy boss is insisting that I post the WIP adjustment to each project. In my 25 years of experience in construction accounting I've never done that and I don't believe it is standard practice. Could use your expert advice. Thanks!
CaliforniaWe are a GC in Arizona. We received a conditional certificate of completion and a letter of compliance both from the city. Do these documents shorten my lien rights to 60 days? Also I notice the laws state the deadline begins after "completion of the project as a whole". Both the conditional certificate of completion and the LOC reference just the completion of the shell with TI work still to be done. The TI work is to be completed under a separate building permit. Does this extend my lien time to after the TI portion is completed as well? Thanks in advance for your help.
ArizonaHi, I am working on a possibly building a new digital printing and periodical publishing center in the Motor Row District of Chicago, IL USA in an Opportunity Zone. Ideally the new structure will be 2-story, 10,000sf total divided over the two floors. With that in mind, I am curious how do I get a guestimate of base construction costs using the estimates on this page since the proposed structure is not a "mid-rise" (unless I am not clear on this definition) and is not a single story building? Please advise. In case I am not clear, I just want the per square foot price for a 2-story, commercial building of 10,000sf. Thanks!
Illinois