One of the things that makes accounting tricky is that many common everyday words have very precise definitions in accounting. They are common words that everyone understands. But in accounting, the words have special meaning. In order to get your homework correct, you need to have a clear understanding of the precise definitions.
The smallest work unit within a project; the basic building block of a project. ADA The Americans with Disabilities Act which gives civil rights protection to individuals with disabilities similar to those provided to individuals on the basis of race, color, sex, national origin, age, and religion.
It guarantees equal opportunity for individuals with disabilities in public accommodations, employment, transportation, State and local government services, and telecommunications. Addendum Addenda Written information adding to, clarifying or modifying the bidding documents.
An addendum is generally issued by the owner to the contractor during the bidding process and as such, addenda are intended to become part of the contract documents when the construction contract is executed. Construction Manager for fee but classified as an independent contractor for tax purposes.
A construction manager for fee does not have any financial responsibility whereas a construction manager at-risk does have financial risk similar to a general contractor. Agreement An arrangement between the parties regarding a method of action.
A term used to describe partial construction work performed within an existing structure 2. Remodeling without a building addition. Application for Payment Contractor's written Costs and direct material for payment for completed portions of the work and, for materials delivered or stored and properly labeled for the respective project.
Architect One who designs and supervises the construction of buildings or other structures. Architects Costs and direct material Services A recognized series of phases performed by an architect as follows: Architect-Engineer An individual or firm offering professional services as both architect and engineer.
As-Built Drawings also known as Record Drawings Contract drawings marked up to reflect changes made during the construction process. It is good practice to make As-Built drawings by marking the changes on reproducible drawings such a sepias for the duplication purposes later.
An offer or proposal of a price 2. The amount offered or proposed. Bid Form A standard written form furnished to all bidders for the purpose of obtaining the requested information and required signatures from the authorized bidding representatives.
A Bid Opening can be open where the bidders are permitted to attend or closed where the bidders are not permitted to attend. Bid Tabulation A summary sheet listing all bid prices for the purpose of analyzing the bid results. Bid tabulations include the required items of the invitation to bid and usually include bid amount, completion time, addenda's included, contract exclusions, bonding rate, etc.
Often times, the apparent low bidder is not the low bidder. The owner usually reserves the right to reject a bid if the Bidding Requirements are not met. Budget Construction Budget 1. An itemized summary of estimated or intended expenditures for a given period of time 2. The total sum of money allocated for a specific project.
To form by combining materials or parts 2. A structure enclosed within a roof and within exterior walls housing, shelter, enclosure and support of individuals, animals, or real property of any kind. Building Code The legal requirements set up by the prevailing various governing agencies covering the minimum acceptable requirements for all types of construction.
The waterproof elements of a building which enclose conditioned spaces through which thermal energy may be transferred to or from the exterior.
The outer structure of the building. Courts have ruled that building inspections are exempt from errors and omissions liabilities. Building Permit A written document issued by the appropriate governmental authority permitting construction to begin on a specific project in accordance with drawings and specifications approved by the governmental authority.
Change Order A written document between the owner and the contractor signed by the owner and the contractor authorizing a change in the work or an adjustment in the contract sum or the contract time. A change order may be signed by the architect or engineer, provided they have written authority from the owner for such procedure and that a copy of such written authority is furnished to the contractor upon request.
The contract sum and the contract time may be changed only by change order. A change order may be in the form of additional compensation or time; or less compensation or time known as a Deduction from the contract the amount deducted from the contract sum by change order.
Change Order Proposal See Change order A change order proposal is the written document before it has been approved and effected by the Contractor and Owner. A change order proposal can be issued by either the contractor or the owner. The change order proposal becomes a change order only after it has been approved and effected by the Contractor and Owner.
Change Order Request A written document issued by the owner requesting an adjustment to the contract sum or an extension of the contract time; generally issued by the architect or owners representative.
This e-mail gives the poster the ability to file and track their respective RFP's using their own e-mail filing system.Examples of direct materials include bricks, shingles, wooden beams and floorboards for a house. Paper for the manufacture of paper bags is also a direct material.
Direct materials are defined as raw materials, parts and . Direct product costs such as raw materials are variable costs.
Variable product costs increase in total as more units of products are manufactured.
As you can see, costs can be direct and indirect depending on the cost object: product, department, and others such as division, customer, geographic. Direct materials cost is a main component of a product's total cost along with direct labor cost and manufacturing overhead.
While no business' costs can remain constant because of changes in both. If a cost is not direct labor or direct materials, the cost is overhead.
In other words, overhead is a multitude of different costs including indirect labor and indirect materials. Here are a few of many examples: electricity, property taxes, advertising, accounting, janitors, cleaning supplies, distribution costs, legal fees, interest.
Introduction & general rule. The "uniform capitalization rules" or UNICAP rules were essentially a codification of the result of case of Commissioner initiativeblog.com Power Co., U.S. 1 () The UNICAP rules require a taxpayer to capitalize [disambiguation needed] all direct and indirect costs that they incur in the production of real or tangible personal property that are allocable to that property.
Labor and direct materials, which are used in creating a specific product, constitute the majority of direct costs. For example, to create its product, an appliance maker requires steel.