"Construction in progress" - the definition is quite complicated, including the cost of work already completed. In addition, this category can include the amount of processes accepted by the customer and already paid for, expressed in price equivalent. It should also be remembered that, in addition, the above section includes the cost of all kinds of technological equipment: both already installed and in the process of installation of the structure. Summing up all of the above, we can conclude that unfinished construction will certainly affect the state of the balance of the customer and fully belongs to the category of installation and design and survey activities attributed to unfinished construction projects or not handed over on time to normal operation.
Distinguishing Features
Unfinishedconstruction 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 completed installation and construction activities, which, in turn, cannot be accepted and paid directly by the customer. Agree, the difference is quite significant.
Perimeter of Influence
Construction in progress is decreasing as a result of the elimination of the size and number of various milestone payments. In addition, the degree of transition of the object to the phase of mutual settlements between the customer and the contractor has a significant impact on the above parameter. On the other hand, a decrease in the value of the parameter "construction in progress" entails an increase in the above indicator, such as construction in progress. Thus, by calculating one criterion, one can observe a change in the behavior of another.
Unfinished construction
The definition of this term is quite simple, but consists of many groups and varieties. For example, this concept can include any subject of a construction contract, which is directly dependent on many reasons. Such grounds can be considered as the absence on the balance of the customera sufficient amount of funds, and insufficient equipment with building materials. As a result of the above factors, the construction object is mothballed and remains at the stage of unfinished formation for some indefinite time. Literally speaking, such a term can include any buildings, structures and buildings, the construction and arrangement of which was not completed. The exception to this rule is all kinds of temporary structures, such as sheds, buildings and various other similar pavilions.
