The amount of construction organizations in incomplete production

The amount of construction organizations in incomplete production

The prevalence for a long time for the gross volume of construction and installation works has led to the fact that the costs of incomplete construction were accumulated mainly in customers, while construction organizations were insignificant. This is due to the fact that the balance of construction organizations reflected incomplete construction, relating to the unfinished stages of the production process, having a short duration. These stages are measured by the volume of work performed over a certain period of time, or the time necessary for the implementation of the volume of production accepted for a unit of calculations, without taking into account the state of readiness of the object.

Consequently, in this case, the amount of funds of construction organizations in the incomplete production of construction and installation work cannot be in direct (direct) dependence on the duration of the construction of each of this facility, enterprise, construction.

Calculations for the object and at the finished stages of buildings and structures lead to a decrease in the share of incomplete production on the ‘balance of the customer and the time of its location on this balance, while the contractor also increases the share of incomplete production and the time of his stay on the balance sheet (not equal conditions equal). The total value of incomplete construction and the term for distraction for costs in production is reduced. In this regard, the relative value of working capital of contractors for the costs of incomplete production has a tendency to increase, while the total amount of working capital for this goal for the construction as a whole (t. e. Both customers and contract organizations combined) is reduced. At the same time, the value of working capital of construction organizations for these costs is associated with the total construction time and is dependent on them.

The predominance in the incomplete construction of costs on construction and installation work confirms the conclusions made above.