.svg)
What is an Office?
An office in the construction industry refers to a space, whether portable or fixed, utilized for administrative tasks such as managing construction plans, processing permits, overseeing contracts, and coordinating construction activities. It may be onsite or offsite, functioning as the hub for project management. Onsite offices, often seen in portable cabins or trailers, serve as the command center monitoring real-time construction progression. They store important documents, house communication devices, and serve as a meeting spot for employees and visiting clients. Offsite offices, on the other hand, handle larger administrative tasks such as project bidding, procurement, and capital management. Moreover, it acts as a central contact point for multiple construction sites. Both types of offices play a pivotal role in ensuring a smooth, sustainable, and efficient execution of construction projects.
Trusted by trade contractors across the country
Other construction terms
What is Profit Fade?
Profit Fade, in the construction industry, refers to a situation where the projected profit margins on a project decrease as the project progresses. This typically occurs when actual job costs exceed the initial estimates, resulting in a decrease in the anticipated profit. For instance, unforeseen complications, increased material prices, labor overruns, or errors in bidding can all contribute to profit fade. It's essential for construction firms to have systems in place for tracking job costs and updating profit projections to manage profit fade effectively. Proactive financial management can minimize the impact of profit fade and maintain project profitability.
What is Certified Payroll?
Certified Payroll is a specific type of payroll process required for any contractor or subcontractor working on federally funded or assisted construction projects under the Davis-Bacon Act. It is a federal compliance requirement to ensure employees are paid prevailing local wage rates and benefits. Certified Payroll records include the worker's name, their classification, hourly rates of wages paid, daily and weekly hours worked, deductions made, and actual wage paid. It provides transparency for regulators, ensuring fair wages for work conducted. This mandatory weekly submission acts as an assertive step in suppressing wage theft in the construction industry.
What is Revenue Recognition?
Revenue recognition in the construction industry is a principle that determines when a company earned revenue is considered. It's not as simple as recognizing revenue when cash exchanges hands. Rather, it's a method used to determine the precise point when contractually stipulated work has been completed for which payment can be recognized. Often, this involves matching invoices to the percent of completed work on a given project. Stage of completion or percentage-of-completion method is utilized, allowing them to record revenue progressively as the project progresses. It's a critical aspect of financial reporting, ensuring revenues, and profit margin correctly reflect the company's current operations. This principle is guided by GAAP and IFRS standards.
Ready to end the fire drill and get paid faster?
