Procedure for compiling and recording costs on a Cost-Plus Contract arrangement:
The accounting method employed by Wattie Wolfe Company for its overall operation is as follows:
- Accrual Method
- Direct Job-Cost Recording per job
- Actual "Percentage-Of-Completion" Method of Reporting as detailed by IRS regulations and guidelines.
Our Method and Layout for monthly progress billing preparation, described below, is suggested for ease of auditing and verification. Our progress billings will include a detailed schedule of costs which will be attached thereto.
The Schedule of Direct Costs for this project will include the following:
- Listing of Project Payrolls by each payroll week. The supports for verification will be a detailed weekly payroll summary by employee name submitted with the schedule.
- Listing of material, fixture and equipment costs by supplier. The supports for verification will be an itemized listing of the suppliers' invoices which will show the cost commodity purchased for installation or consumed in the performance of job completion.
- Listing of Sub-Contractor's costs by contractor name. The supports for verification of these costs will be an itemized listing of Sub-Contractors' invoices.
- A schedule of rental costs on each piece of company owned construction equipment employed on this jobsite will be prepared for inclusion on the itemized cost schedule.
This progress billing method makes a neat, legible package with support verification conveniently attached. It will be prepared in an orderly fashion and will be easy and a pleasure for those reviewing to work with. The Wattie Wolfe Company has the experience, equipment, and expertise to prepare progress billings in most any fashion desired. If an alternative is preferred, we will be happy to work with it.
This system was originated and is managed by Gary Henderson, Wattie Wolfe Company's Secretary-Treasurer and Controller. Mr. Henderson maintains close control on all field cost control and accounting through regular monthly meetings with the Project Manager.