Contrac costing

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This query is : Resolved

vishal h baldaniya (Querist)

25 October 2013 pls let me know the contrac costing formulas for work.completed and percentage. and for estimated contrac also and the payment made accordingly to contractor

CA Vijeta Verma

CA Vijeta Verma (Expert)

28 October 2013 PARAMETERS OF TRANSFERING AMOUNT TO P & L ACCOUNT ON THE BASIS OF WORK CERTIFIED

% of work certified to date

(1)<25%
(2)25-50%

(3)50% or more

(4) near completion stage
Amount to be transferred to p & L a/c

Nil
1/3*notional profit*cash received/work certified
2/3*notional profit*cash received/work certified

(a)estimated profit*work certified/contract price
(b) estimated profit*work certified/contract price*cash received/work certified
(C) estimated profit *cash received /work certified* cost of contract to date/total estimated cost

Further,
Notional profit=value of work certified+ cost of work uncertified-cost of contract to date
Estimated profit=total contract price- total estimated cost
Total estimated cost=cost of contract to date + estimated additional cost+ provision for contingencies

% of work certified= value of work certified/total contract price*100

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