Progress billing happens when contractors bill based on how much of the job is accomplished at each interval. If a company has completed 25% of a contract, its total bills to the customer will be equivalent to 25% of the contract value. Its formula is as follows: percentage complete * (contract amount + approved change orders) = amount billed.
The construction industry faces a persistent labor shortage in early 2025, with an estimated 439,000 additional workers needed. Contractors struggle to find skilled labor, leading to rising wages, project delays, and cost increases. Workforce development and immigration policies will be key to addressing this challenge.
Read MoreLearn effective overhead allocation in construction to improve cost control, financial reporting, and decision-making. Discover best practices, allocation methods, and the role of technology to optimize profitability and streamline operations in this crucial aspect of construction accounting.
Read MoreExplore the critical differences between direct and indirect labor in construction projects, focusing on their impact on project costing, financial analysis, and strategic decision-making. Understand overhead allocation methods and enhance your construction accounting practices for better profitability.
Read MorePresident Trump’s second term will shape the construction industry with policies focused on infrastructure spending, tax reform, and streamlined permitting. Challenges like labor shortages and material costs remain, but initiatives like the Department of Government Efficiency (DOGE) aim to reduce bureaucracy and drive transformative projects.
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