So if CIP is greater than Progress billings does that basically mean you have underbilled the client? I.e. you have a current asset because you over-performed service, you have done $500,0000 worth of work but only billed $50k so you have the capacity to bill an additional $450,000 to fully account for work performed
Excellent explanation Darius...Cheers and thank you
Thank you
So if CIP is greater than Progress billings does that basically mean you have underbilled the client? I.e. you have a current asset because you over-performed service, you have done $500,0000 worth of work but only billed $50k so you have the capacity to bill an additional $450,000 to fully account for work performed
What would happen if the construction was operating at a loss?
Recognize it immediately reducing your profit.
@@mohamedmunye6372have to make sure your loss is big enough to back out prior revenue as well if the contract is at an expected overall project loss