"Construction in progress" - the definition is quite complicated, which includes the cost of work already completed. In addition, the value accepted by the customer and already paid processes, expressed in price equivalent, can be attributed to this category. It should also be remembered that in this section, in addition, the cost of all kinds of technological equipment falls: both already installed, and in the process of installation. Summing up all of the above, we can conclude that unfinished construction will certainly affect the state of the customer’s balance and fully belongs to the category of installation and design and survey activities attributed to unfinished construction projects or not delivered on time to normal operation.
Distinctive features
Construction in progress is an important economic indicator that should be distinguished from other similar ones. It's all about the similarity of the name and quite different definitions. For example, the most similar term (construction in progress) denotes the cost of installation and construction activities, which, in turn, cannot be accepted and paid directly by the customer. Agree, the difference is quite significant.
Influence perimeter
Construction in progress is reduced as a result of the elimination of the size and number of all kinds of interim payments. In addition, the degree of transition of the object into the phase of mutual settlements between the customer and the contractor has a significant impact on the aforementioned parameter. On the other hand, a decrease in the value of the "construction in progress" parameter entails an increase in the aforementioned indicator, such as construction in progress. Thus, by calculating one criterion, one can observe a change in the behavior of another.
Construction in progress
The definition of this term is quite simple, but consists of many groups and varieties. For example, this subject can include any subject of a construction contract, which is directly dependent on many reasons. Such reasons can be considered as the absence on the balance sheet of the customer of a sufficient amount of cash, and lack of equipment with building materials. As a result of the above factors, the construction object is conserved and remains at the stage of incomplete formation for some indefinite time. Speaking literally, then to such a term can be attributed any buildings, structures and buildings, the construction and arrangement of which was not completed. All kinds of temporary structures, such as canopies, buildings and various other similar pavilions, become an exception to this rule.