The second step in designing a file structure is to create classes of work within the construction company. If you only do one class of work, give it a name. It is highly probable that future work will bring about a new class of construction within your company. By classifying your work now, it will be easier to implement new classes in the future. If you are a new home contractor, then use classification based on developments or types of new homes. The following are different examples with the classes highlighted: Example 1 You build new homes in three different developments; this works well if the – developments are large and will be around for a few years. homes built in the Yorkshire Subdivision Yorkshire – homes built in this subdivision on the water Water’s Edge – a totally separate development in another zip code Governor’s Landing – Example 2 you build custom designed homes and sell houses. – ‘spec’ Design/Build Spec Example 3 you work around 3 basic models of homes – Livingston a slab based model with 3 variations – Covington a basement model with no variations – Breckenridge a foundation based model with two floors and 3 variations – The idea is simple; create classes of construction that several projects will be built within the class. Do not create a class for one project, lump this project in with some other class. Classes can be focused on your construction divisions, such as new home, additions, and remodeling. See for more guidance. If you are not in residential construction and perform some other type of construction, group your projects based on function, geographical territory, or even material based projects. The following are some examples: Example Site Developer types of developments – – Residential Development Commercial Development Industrial Development Example Road Contractor core material based – – Asphalt Concrete Gravel/Other Material Based Roads Example Fencing Contractor types of installations – – Wire Fence (Chain link, Barb, Electric) Privacy Temporary construction type fencing – Phases of Construction This is the core information for accounting. Phases are the steps in your construction process. If you are home builder/remodeler, then use the nine phase system as described in . This article describes each phase and a numbering system. In general the phases are 01 09 and each is a –
The second step in designing a file structure is to create classes of work within the construction company. If you only do one class of work, give it a name. It is highly probable that future work will bring about a new class of construction within your company. By classifying your work now, it will be easier to implement new classes in the future. If you are a new home contractor, then use classification based on developments or types of new homes. The following are different examples with the classes highlighted: Example 1 – You build new homes in three different developments; this works well if the developments are large and will be around for a few years. Yorkshire – homes built in the Yorkshire Subdivision Water’s Edge – homes built in this subdivision on the water Governor’s Landing – a totally separate development in another zip code Example 2 – you build custom designed homes and sell ‘spec’ houses. Design/Build Spec Example 3 – you work around 3 basic models of homes Livingston – a slab based model with 3 variations Covington – a basement model with no variations Breckenridge – a foundation based model with two floors and 3 variations The idea is simple; create classes of construction that several projects will be built within the class. Do not create a class for one project, lump this project in with some other class. Classes can be focused on your construction divisions, such as new home, additions, and remodeling. See for more guidance. If you are not in residential construction and perform some other type of construction, group your projects based on function, geographical territory, or even material based projects. The following are some examples: Example – Site Developer – types of developments Residential Development Commercial Development Industrial Development Example – Road Contractor – core material based Asphalt Concrete Gravel/Other Material Based Roads Example – Fencing Contractor – types of installations Wire Fence (Chain link, Barb, Electric) Privacy Temporary – construction type fencing Phases of Construction This is the core information for accounting. Phases are the steps in your construction process. If you are home builder/remodeler, then use the nine phase system as described in . This article describes each phase and a numbering system. In general the phases are 01 – 09 and each is a
Implement-Cost-Accounting-in-Construction.docx