Practical Guide

Construction Accounting Methods Construction accounting differs from general accounting because of the long-term nature of construction projects and the need to match revenues with costs over the project life. The percentage of completion method recognizes revenue and expenses as the project progresses based on the percentage of work completed. The percentage complete is determined by […]

Construction Labor Relations Labor relations in construction involve the relationships between employers and workers, including the negotiation and administration of collective bargaining agreements. The Davis-Bacon Act requires that workers on federally funded construction projects be paid prevailing wages determined by the Department of Labor. Prevailing wages are based on the wages paid to the majority

Project Risk Management Construction project risk management identifies, analyzes, and responds to uncertainties that could affect project objectives. The risk management process begins with risk identification, where potential risks are identified through brainstorming, checklists, historical data, and expert interviews. The identified risks are documented in a risk register that describes each risk, its causes, its

Time Series Analysis for Construction Cost Escalation Construction costs have experienced significant escalation over the past several decades due to increases in material prices, labor rates, and regulatory requirements. The analysis of historical cost trends provides the basis for forecasting future cost escalation and establishing appropriate contingencies in project budgets. The Engineering News Record construction

Project Feasibility Studies Project feasibility studies evaluate the technical, economic, and financial viability of proposed construction projects before significant resources are committed to design and construction. The feasibility study identifies the project objectives, defines the scope, evaluates alternative approaches, and provides the information needed for investment decisions. The technical feasibility assessment examines the site conditions,

Construction Cost Estimating Methods Construction cost estimating is the process of forecasting the costs of labor, materials, equipment, and overhead required to construct a project. The accuracy of the estimate depends on the level of project definition at the time the estimate is prepared and the quality of the cost data used. Order-of-magnitude estimates are

Baseboard Installation Baseboards provide a finished transition between the wall and floor while protecting the wall from damage. Standard baseboard heights range from 3-1/4 to 5-1/2 inches for residential applications. Taller baseboards create a more formal appearance and are common in traditional architecture. Inside corners should be coped rather than mitered for tighter joints that

Electrical Code Requirements The National Electrical Code governs residential electrical installations, specifying minimum requirements for safe electrical systems. The NEC requires that all electrical work be performed by qualified persons and that installations comply with manufacturer instructions and listing requirements. Ground fault circuit interrupters are required in bathrooms, kitchens, garages, basements, and outdoor locations where

OSHA Requirements and Compliance Construction safety programs must comply with OSHA standards that address the specific hazards present on construction sites. The Focus Four hazards falls, struck-by, caught-in or between, and electrocution account for more than 60 percent of construction fatalities annually. Employers must conduct regular hazard inspections, provide appropriate personal protective equipment, and train

Project Planning Phase Construction project management begins with comprehensive planning that defines the project scope, establishes the budget, and develops the schedule. The work breakdown structure decomposes the project into manageable work packages that can be estimated, scheduled, and tracked. Each work package includes the labor, materials, equipment, and subcontractor requirements needed for completion. The