Building Design and Construction

Cost Records

Segregation of costs for each job is essential for proper construction project management.
Only with such records can profits or losses for each job be calculated and predictions made for future work costs. After award of subcontracts, in order for records to be up to date as to any extras or credits that are being claimed by or awarded to the subcontractors for changes (Art. 17.14), a monthly update of all anticipated costs for each subcontract is essential. This can be done by means of an Application for Payment Form (Fig. 17.21) from each subcontractor.
On this form, the approved extras are shown on the second line on the front of the sheet under Amount (Fig. 17.21a). Also, all extras claimed by the subcontractor must be listed on the back (Fig. 17.21b), as shown on the portion of the form Extras to Date.

Payrolls. From the daily reports received from the field (Art. 17.10.3), weekly payrolls can be prepared for each job. Labor for each job must be segregated and tabulated in a payroll report (Fig. 17.22). This report also provides statistics on tax withholding to the government, as well as other payroll information. In addition, the report gives the gross wages week by week.

Monthly Cost Report. This report summarizes subcontracts and extras, material purchases, and labor costs encountered to date and expected to be encountered until completion. A monthly report prepared in a manner similar to Fig. 17.23 (computer spreadsheet) will yield information to the contractor, long before the job has been completed, for calculating anticipated profit for the job. It also will offer a method of monitoring job progress and costs to ascertain whether the anticipated profit is being maintained.

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