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The purpose of obtaining a certificate of occupancy is to prove that, according to the law, the house or building is in liveable condition. Generally, such a certificate is necessary to be able to occupy the structure for everyday use, as well as to be able to sign a contract to sell the space and close on a mortgage for the space.
A certificate of occupancy is a legal document that proves a property is safe to inhabit and meets all code and usage requirements. It is often required for major home renovations or when selling ...
Sectional completion refers to a provision within a construction contract which allows different completion dates for different sections of the works. This is common in larger projects which are completed in stages, allowing the client to take possession of the completed parts whilst construction continues on others. [26]
Construction accounting is a form of project accounting ... An example of a Percentage of Completion Method: A construction company has entered into contract to ...
In the 2009 amendments, the payer or payee can issue the certificate if the contractor administrator fails to do so. The JCT encourages retention of an agreed percentage of the contract sum until practical completion and then a percentage for a period after final completion. This avoids payment in advance for such things as minor defects or ...
Accounting for long term contracts can be done in two ways: through the completed-contract method and the percentage of completion method. The choice between the two depends on the provisions of SOP 81-1 from the AICPA. The completed-contract method recognizes income only when the contract is completed or substantially completed. [1]