Construction Accounting 101: Expert Guide for Contractors

Facebook
Twitter
LinkedIn
Pinterest

what is a construction budget analysis in accounting

Continue reading how the platform can help you keep your projects on budget or book a demo on top of the page. We all miss something at one time or another, sometimes it’s big, sometimes it’s small. Strive to take the appropriate amount of time to always double-check all of your budgetary assumptions. Finally, it is important to have good control of the project plan so that deviations are fixed quickly and not to have a major impact on the final budget. After that, if necessary, go to the Budget page to add expenses or simply a markup percent to account for unexpected costs. Three-point estimation is one of the most sensible and pragmatic techniques as it takes into account a weighted average based on the best, worst, and most likely case budget scenarios and encourages you to think from multiple perspectives.

  • The software learns from your previous projects and lets AI help you estimate each task and create a solid project schedule.
  • Depending on the project’s size, construction work-in-progress accounts can be some of the largest fixed asset accounts in a business’s books.
  • For bottom-up budget integration, Oracle Projects generates accounting events to create budget journal entries.
  • To include the financial impact of the change document in a plan version in this instance, choose Printable Page on the View Financial Impact page to print the document information.
  • For contractors, revenue recognition is a complex topic, largely because of the long-term nature of many projects.
  • The dates are automatically set to equal the start and completion dates of the project or task.
  • Budget forecasting should be a part of any successful project planning process.

Prepare a schedule progress report on planned versus actual expenditure on a project (similar to that in Figure 12-5) for the project described in Example 12-6. Suppose that you assume that the productivity achieved in week 3 would continue for the remainder of construction bookkeeping the project. Develop a formula or set of formulas for forecasting the ultimate expenditure on this activity given the percentage of completion. Assume that any over or under expenditure will continue to grow proportionately during the course of the project.

III. Procedure for Requesting a Capital Project

Realistically, a budget accounting item for contingency allowance should be established whenever a contingency amount was included in the final cost estimate. Research leads to the project owner or architect choosing a final design. The project manager uses this information to create a requirements list, including materials and cost estimations. This informs the project bidding process, which is when the project owner chooses a general contractor and sets the framework for building the actual construction project budget.

What is construction cost accounting?

Construction accounting is a form of project accounting in which costs are assigned to specific contracts. A separate job is set up in the accounting system for each construction project, and costs are assigned to the project by coding costs to the unique job number as the costs are incurred.

Items which the contract schedule specifically excludes, shall be allowable only as depreciation or amortization. The terms “special tooling” and “special test equipment” are defined in 2.101. The relocation costs are determined under the rules of paragraphs through of this section. However, the costs to return employees, who are released from employment upon completion of field assignments pursuant to their employment agreements, are not subject to the refund or credit requirement of paragraph . Amounts to be reimbursed shall not exceed the employee’s actual expenses, except as provided for in paragraphs and of this subsection. Costs for employment agencies, not in excess of standard commercial rates.

Equipment and tools

If the plan version fails the baseline/approval requirements, then the system issues an error message and no status change is made. If the baseline/approval rules are met, then Oracle Projects changes the plan version status to Baseline or Approved. If the plan version fails the Workflow process, then Oracle Projects issues an error message and no status change is made. The system invokes Workflow if the Enable Workflow for Status Changes option is enabled for the financial plan type.

what is a construction budget analysis in accounting

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow us

Facebook Twitter Youtube

Categories

  • Category 1
  • Category 2
  • Category 3

Newsletter

Recent Post

(MORE) A TRIGGER MOMENT (2)

But, believe it or not, George Floyd’ money exchange scenario (especially, as I wrote it in the play) flashed before me – as he presented the cashier in his case a large bill, which in his case, was just a twenty dollar bill. Any way I gave her the C-note, held my breath and just hoped for the best. Now, I considered that I was surely over reacting. Because, I had just got this package of c-notes right from the bank. But continuing, the cashier accepted my c-note, frowning as she looked closely at it.

She thereupon held it closer to her eyes, frowning more. Then she would hold it overhead, towards the overhead light, (and squinting her) eyes. Next, she held it up and out towards the sun rays, coming through the large nearby windows

Oh my goodness, I thought,” let me tell this lady that I have the $41.00 in smaller bills, for her.”. But before I could get it out my mouth, she pivoted and left her drawer and station and walks three, (that’s right, three) whole aisle’s over.

“don’t tell me” I’m thinking, “she’s going after the dollar proofer contraption! And my goodness”, I reflected. “This is most unsettling. This is the very picture of what I imagined and actually wrote in my Saint George Floyd play.”

And she did exactly that! She ran it through, once while frowning, and then again, still frowning and nodding her head (negative) But, now, my girl, returns, and still with no words she deposits the funds beneath her drawer.

(Continued)
(MORE) A TRIGGER MOMENT (3)

Now, I knew my C-note was good, as I got it from the bank, but that didn’t ease this dreaded moment. Cause, who’s to say George Floyd’s paper wasn’t legit! And, now I know this story is getting long, and is already probably uncomfortable, but, I need you to feel my pain and dread, as I felt it. Or at least understand my feelings. And maybe, if possible, feel that I had a right to them.

But, back to the cashier, whom returns, without apology, counts out and hands me my change, with the receipt, smiles and turns for the next customer in line. I truly felt abused and was still concerned, and felt very much unsafe; not knowing if they (the machine) determined that the bill was a possible fake, and perhaps the police would appear to take me down at the door, or what?

And I thought upon my last trip to thos store, and the very same lady waited on me, and that evening, her not finding the sales ticket visible, she quickly threw my item under the counter, saying, that it wasn’t priced, so she couldn’t sell it. But I advised her it was marked inside, which she found to be true.

But, getting back to today, I did, make it out the door, without being intercepted by law enforcement, But, I said, let me make it to the car before I break down in relief.

But, making it to the car, I wanted to make a cell phone call, but, I thought better, let’s me move out before a swat team corner me in, with overhead helicopters.

So, I left thankful for my freedom and life, until the next shopping engagement. I noticed that my head, neck and shirt was filled with perspiration.

(Continued)
(MORE) A TRIGGER MOMENT (4)

Now, you may wonder, was this a Macy or Bloomingdale. High end shop, I was shopping and followed around to protect the precious merchandise. No, ha, ha, This was a Salvation Army store. You know, like a goodwill, thrift shop. But, With Blacks, as prey, it’s not what they’re protecting, it’s who you are.

“don’t tell me” I’m thinking, “she’s going after the dollar proofer contraption! Oh my goodness”, I reflected. “This is most unsettling. This is the very picture of what I imagined and actually wrote in my Saint Georfe Floyd play!” Now, panicking, I thought again to holler, to get her attention, that I had some smaller bills, that she could try.

And I submit that this is an important work, one of the most significant of this millennium. As this work is significant on several fronts: spiritually, it opens up Scriptures and God’s Voice that is a Godsend, and oh, so, precious but rare. It also offers a comforting understanding of the continuity of Life beyond the Earth plane. It as well, and in the natural, highlights the burden Black households have to give the Race talk to their young charges.

And, in concluding, the cause and purpose of the writer initiating this piece, which was as a mission, is that Saint George Floyd’s sacrifice and it’s aftermath of goodwill not diminish nor be forgotten, but is ever before men.

Yet the chief catalyst of the story is by the writer is to keep “George Floyd’s story center front, that men can continue to face one another as Brothers and One in fairness, justice and equity.
(Please Continue Below to The Celebrity Blog )
(More) A letter from a Blackman…

George Floyd still could have been any of us. 

Since then I’ve asked myself so many questions. How come the police hate us? Will I ever get to live a life free of fear, free of pain, and anger? But the question that scares me the most is, do I need to see a therapist? The answer to the last question is, probably. 

When soldiers go to war, some come back broken because of the devastation, destruction, and trauma they had to endure. It’s called PTSD, or post-traumatic stress disorder and it’s a serious condition. 

If you can have sympathy for a soldier’s pain, how come you have little for Black pain. Our trauma is just as real as anyone else’s and we never signed up for it. 

In 2007, Robert. T. Carter theorized that individuals of color who experience racially charged discrimination as traumatic and often generate responses similar to post-traumatic stress. This was known as Race-based traumatic stress. It’s defined as the traumatic response to stress following a racial encounter. 

Racial trauma can be experienced by an individual or by an entire community and can also come with a host of symptoms such as anxiety and depression, loss of appetite, nightmares, low self-esteem, etc. 

Back to Top

BUT HOW IS GEORGE FLOYD A SAINT? (4 parts)

Part 1 – Speaking of Miracles 

“But, how is George Floyd a Saint?” Yes, this question was raised as soon as I brought the name and idea of the play up, and it still reverberates “But how is George Floyd a saint?” 

So, let’s look at this in today’s light. Today, Saints must have performed at least two verified miracles. Ok, so let’s consider George Floyd. Now, according to the Washington Post, in the less than two years of George Floyds passing – on the law perspective – over 150 pieces of legislation and laws have been passed (in America) corralling in police powers and potential abuse. (Miracle #1). 

And on the economic and equity side, American corporations have pledged over 50 billion dollars towards Black causes, justice and equity (miracle #2). And shortly after the video of George Floyd’s state sanctioned execution went world viral, major, street closing, demonstrations (of majority White marchers) went on for weeks in over 150 countries around the world (miracle #3). 

None of these three monumental accomplishments had ever been even partially met, before (in the four centuries of Black subjugation in America) nor was any even considered possible.  And I submit to all, each was nothing less than a miracle of God!

But, now, let’s detour, from Saint George Floyd and let’s consider our idea and imaginings of the Sacredness of the Saint’s ordinations process and our overall reverence and goodwill in the Sainthood process, the Holy See and council.

Part 2 – What’s Holy about the (Sainthood) Process?

But, what, if like me, you know or learn that many a pope and cardinals and their bastilles owned enslaved persons, and even participated in their sub-human treatment and also the trading of Black humans as chattel to raise money for the church growth, etc.. Just google ‘Popes and Cardinal’s that owned slaves / enslaved persons’. And you will be surprised, and hopefully hurt and dismayed. And, it’s not hidden knowledge. 

There’s a most recent story, from the New York Times, March 2022, noting how Georgetown University (a leading Catholic University) was admitting to commandeering enslaved persons for free labor to build much of its campus; a deed they now admit was wrong and immoral and are now pledging over 100 million dollars, to remedy, with more promised.  

Ok, so how does that believed sacredness of the Saint-hood look now? Oh, that’s the past, one can rationalize. Well, what about this; less than two years ago, the head of the Saint making department, in the Vatican, was charged with corruption and conspiracy in a most unholy scandal. See below from a recent NY Times article.

“Cardinal Giovanni Angelo Becciu, accused of embezzlement, abuse of office, witness tampering, is on trial with nine other defendants in a corruption trial that centers on a London realestate deal in which the Vatican lost millions, charges the defendants deny. Pope Francis demanded the cardinal’s resignation,as head of the department in charge of making saints, in September 2020”

New York Times 5/5/2022

Seems to me, doubters, should first turn their attention to reform, this historic and present evil cabal, which grossly dishonor the Sainthood and the truth of God’s nature. 

Part 3 – The Evils that came before

Ok, let’s take a further look back, on the character and moral fortitude of the early church leaders.  In another find, biblical scholars and ancient manuscript researchers have recently shared a most disturbing (to most true Christians and right minded persons) a papal executive pronouncement issued by Pope Nicholas V, in the mid 1400’s. It’s referred to as the ‘Doctrine of Discovery 1452, and it’s included below.

Now, this (Doctrine of Discovery 1452) was issued, less than 50 years before Columbus invaded the islands around the Americas (in 1492).

In this light, we can better understand the atrocities scholars have attributed to his mad band of merry men, against the hapless, peaceful, inhabitants of the lands they would happen upon. For, by the highest order, the pope, whom, in earlier days was accepted as part King and part God Messenger, this exposition orders were not a betterment of mankind or a ‘we come in peace, mission’ but to conquer and annihilate: “to invade, search out, capture, vanquish”, etc. 

And understand these (designated enemies) were faultless and were inhabitants of far-away distant lands, which they were not at war with or had no knowledge of. And here, by this executive order they are commanded to reduce the inhabitants (of their own land) to “perpetual slavery, and to seize everything movable and immovable”. 

Wow, does this sound like a Holy or Christ driven mission or priesthood? Then what of its ‘saints’? Well, the Scriptures answers that “if the root of the tree is rotted, the entire tree is” 

Part 4 – Is a Saint for Black Justice not needed?

It’s probably little known, but Saints aren’t generally bestowed upon the overall church – but bestowed upon a cause, which is observed and needing certain help or hope. 

And now see, as there are hundreds of Saint’s, for just about any cause or group. ‘Saints for orphans’ ‘Saints for women’s Freedom’ ‘Saints of the down trodden’ ‘Saints for healing’, etc. So, see since Saints have specific duties and assigned groups and being that George Floyd, has brought such a massive influx of laws for equal justice and a great transition for economic parity for the Black race, except for bias, or unawareness, how isn’t he a Saint for Black justice, liberty and equity?

So, to the question, “how is George Floyd a saint? I ask you, even as I ask all, except perhaps in the mind of the bias, the ignorant or unaware, “how is George Floyd not a Saint?”

Here are just a few national articles (on the phenomenal Justice and economic Initiatives and impact) towards the Black race in America post George Floyd:

Mckinsey report / Mckinsey.com

‘The Opportunity to Advance Racial Equity’

NBC News / nbcnews.com 

‘Monumental impact of George Floyd’s death on Black America’

Washington Post / washingtonpost.com

‘Corporate America’s 50 billion promise’

Time Magazine / time.com

America since promises of the George Floyd protests

MORE ON – SUMMARY

Praise the Lord and pass the Blessings. This play ‘SAINT GEORGE FLOYD’ besides a vehicle of great entertainment, featuring: song, dance, art, video highlights and poems is foremost a celebration of George Floyd’s Life and Legacy, but it’s also an entity of renowned spiritual sharing. And it offers, that George Floyd did indeed “touched the world”, even as he promised – as humanity worldwide joined for the cause of ‘life, liberty and justice’ for all. 

The Mission and Purpose is Great!

And it’s about our survival (nothing less)

as Free Persons with equal Citizen Rights 

And, this is the writer’s mission, that Saint George Floyd’s sacrifice (and it’s aftermath of goodwill) not diminish nor is forgotten – but is ever before men and is multiplied -and that all men join together, in brotherhood. 

The Principle Story

Our story essentially is the chronicles of one day – (George Floyd’s last earth day – and his heavenly sojourn. Now, the (principle) story, in the story takes place on the second anniversary of George Floyd’s demise. 

Surely, it’s a story that’s not singular in nature; as it’s of a dutiful Black Father (of two young off-springs) just after the youths viewed a news replay of the (two years old) tragedy. Now, this Dad, as his peers, is compelled to deliver the Race / and George Floyd talk. (Thus, begins the ‘Saint George Floyd’ story).

God was in the Plan

Yet, this is a tale of grace and fantasy, not fatalism. It’s a comforting tale of hope and God’s gracious love. And we find that God Almighty was in the plan all along. As a Scripture reads “Man meant it for evil, but God meant it for good” And, the greater of this works takes place beyond the Veil – in the heavenly realm, even where he’s anointed ‘Saint George Floyd’. 

And in this heavenly aisle, Saint George Floyd, meets three of his most desired figures – and new guides: first his Mom, secondly, Jesus the Christ, and the third, the celebrated, Doctor Martin Luther King Jr. And as these share (comfort inspiration and Truth) with our subject, we’re also beneficiaries.

A Prayer for the Race

And it’s our ardent prayer, that – this vehicle might be an influence to help keep these newfound doors of goodwill, recently, extended to the darker skinned, open. While we readily, acknowledge, this effort is just a part, and of no great effect without the work and prayers of you and the collective. Yes, everyone and every fiber of our being, must move towards FREEDOM AND JUSTICE NOW!

MORE ON - WARREN AVERY

Warren’s latest book, as are several of his, is a book on Spirituality. It’s named ‘The Dynamic Truth of Being’. And its small audience, unanimously, touts it as a spiritual masterpiece. And Warren gives all the glory and praise to the Most High. His other spiritual books are ‘Teach Us to Pray ’The Spirit’ ‘Working on the Christ’ ‘But I say Unto you. And he’s even working on one now entitled ‘The Spirit speak’

Mr. Avery has also served as an instructor of Creative Writing and concept development in several educational and creative capacities.

And now Mr. Avery brings all his creative gifts, spirituality and love to the Saint George Floyd play / project, where he insists this one is a duty, and that in this, he’s truly “On a Mission from God’. 

MORE ON – LEIA AVERY

Co–creator, LEIA AVERY, is seemingly a born creative and business minded young female millennium. We can probably say it’s in her genes. She has shared that at 8 or 9 years of age, she set up a replica of ‘Bozo’s grand prize (bucket) game’ and others in her backyard and charged her friends and neighbors (their allowance) to play the games – they in fun and in hopes of winning some prizes. 

Now, as head of Just Play Entertainment, Leia is still about creating fun moments and activities. As Just Play caters to all – any size party or group: adults, students, families and even corporations. And Just Play’s (true to life) motto is “Never Stop Having Fun!” So you can see, Leia is on a roll and Leia plays to win. 

Leia as well has been an owner of a few small businesses and also Real Estate parcels. 

And now she gladly shares her various expertise and creativity in the production and promotion of the Saint George Floyd Musical Play and SGFmovement.com.