Cost Accounting- Profit and Loss Tables
Real Construction Costs- Real Labor Costs

Progress payment is a partial payment paid by the owner, verifying that portions of the Work have been accomplished. But basically, it is an invoice showing the quantity of the realized construction, unit price of the construction items and the cost of the realized construction.The conditions, payment intervals and the format of this invoice are defined in the aggreement.

The cost of each construction item is defined in the aggreement. It is also known for which construction item an invoice is made out. A database can be created based on this simple relationship. Tallying can also be processed in the same database. Which worker worked for which construction item on which day? The construction item costs and labor costs can also be processed in the same database to calculate the “Real Construction Costs” and the ”Real Labor Costs”. We had created the cost analysis for all construction items, determined the general expenses and the profit margin and calculated the project cost in the proposal prepared during the preliminary studies phase. We can easily determine the actual cost of all resources during the realization phase of the project. For example, material and labor costs are determined from the stock records and tally lists.

The determination of the real costs of the resources reveals the real values of the production analysis in estimated in the proposal. After this determination, these values aren’t hypothetical but real analysis. We can compare the analysis of each construction item that is in the proposal, as estimated and realized. This comparison reveals the the profit or loss in during the constructing of each item clearly.

The other advantage of making this comparison is that the stocks are continuously kept under control. We had calculated the material requirement based on the hypothetical analysis. Following the real stock movements enables us both to determine the materal costs in those analysis and to follow the purchases and excess material amount more consciously.

Those information must be entered in the system and reported in different formats. Otherwise, this knowledge gained by experience is going to be forgotten. At the completion of each project, recording the experience in the firm analysis and the firm unit price database ensures a strong base for the future proposals and decisions of the company.