Financial Terms
Glossary
Construction business glossary defining the most used terminology in the industry
A set of libraries used to access data from databases in .NET applications.
An intentional effort to complete a construction project faster than the original schedule.
A contractual provision that allows the owner to accelerate or speed up the construction schedule under specific conditions.
A written order from the owner instructing the contractor to expedite construction work to meet a specific deadline.
A review of financial accounts to identify trends, discrepancies, and opportunities for improvement in construction company finances.
A matrix that outlines the roles and responsibilities of stakeholders in a construction project.
Effective use of construction-specific accounting software.
The amount owed by a construction company to its suppliers or vendors for goods or services purchased on credit.
A report that shows how long each unpaid vendor invoice has been outstanding.
Estimating future expenses owed to suppliers, aiding financial planning decisions.
The amount owed to a construction company by its customers or clients for goods or services provided on credit.
A report that shows the amount of time each customer's unpaid invoices have been outstanding.
Predicting future income from outstanding customer payments, ensuring financial stability.
A report that shows the number of times a company's accounts receivable balance is collected during a period.
A liquidity ratio that measures a construction company's ability to cover short-term obligations without relying on inventory.
Proactively managing labor resources to maximize productivity and minimize inefficiencies in construction projects.
Proactively identifying and addressing potential risks in construction projects to minimize negative impacts.
A cost allocation method that assigns costs to specific activities in a construction project to improve accuracy.
The total cost of work completed on a construction project, including direct and indirect costs.
An entity or individual added to an insurance policy to be protected under the policyholder's coverage, often used in construction contracts.
A type of surety bond that guarantees the repayment of advanced payments made by the owner to the contractor.
A sworn statement from a contractor or subcontractor attesting to the payment of workers, suppliers, and subcontractors on a construction project.
A visual tool used to organize and categorize ideas, issues, or data related to construction project planning.
A contractual obligation requiring a construction company to perform specific actions or meet certain conditions.
Costs that are permitted or approved for reimbursement in construction contracts or government projects.
A specific sum included in the contract for anticipated costs or variations that are not fully known at the time of the agreement.
A separate tax calculation required for some construction companies to prevent excessive tax deductions.
The effective interest rate, including all finance charges, on a construction loan or financing arrangement.
An open-source tool for transferring data between Hadoop and relational databases.
A contractual provision that requires disputes to be resolved through arbitration rather than litigation.
Updated drawings that reflect the actual construction, including any changes or modifications made during construction.
The total cost of a construction project divided by the total quantity of units produced.
Managing the accounting for company assets, such as buildings and equipment.
A financial metric that measures a construction company's ability to generate revenue relative to its total assets.
A report that measures the efficiency of a company's use of its assets to generate revenue.
The estimated value assigned to a construction project or task for budgeting and resource allocation.
Financial statements that have been examined and verified by an independent auditor for accuracy and compliance
An overhead rate validated and approved by an independent auditor for use in construction project accounting.
External and internal auditing procedures and practices for construction accounting.
Ensuring that sufficient funds are available to cover construction project costs, especially for government-funded projects.
An open source software platform used to create data visualizations and reports.
A charge assessed against a contractor or subcontractor to cover expenses incurred due to their failure to meet contractual obligations.
The total value of construction contracts awarded but not yet completed.
A report that lists tasks that need to be completed, prioritized by urgency and importance.
Snapshot of assets, liabilities, and equity, indicating financial health.
The date at which a construction company's financial position is reported in its balance sheet.
Financial ratios that assess a construction company's liquidity, solvency, and financial strength.
A request for funds submitted by a contractor or developer to the lending institution for a construction project.
Accurately reconciling bank statements with the company's financial records.
A provision in the U.S. Bankruptcy Code that governs the reorganization of a company, including issues related to labor contracts in the construction industry.
