Decoration Finals Common Problems and Solutions Decorative Project Settlement Cases

â–  Confirmation of the amount of work. In the process of construction, it is often because some customers create new ideas or other causes of engineering design changes, which will inevitably cause construction changes, increase the workload, which will inevitably cause changes in costs, so in the final accounts To confirm the actual amount of work.

â–  Determination of the quality and quantity of materials. In the process of home decoration, there are many reasons that can lead to economic compensation. For example, the main decoration materials are replaced by other materials, the quantity of materials is changed, and the quality of materials is purchased according to requirements. These need to be included in the final account of the project so that the cost can be calculated. Make adjustments.

â–  Identification of changes in the construction process. In the actual construction, there will often be some costs due to on-site water cuts and power outages, grabbing schedules, site sporadic eradication, removal of rubbish, and sporadic borrowing, and so on. When such costs are relatively high, both Party A and Party B It is unlikely that any of the parties will fully assume. Such expenses should also be included in the final accounts and resolved through consultation between the parties. The final account of home decoration is the final settlement of the entire renovation project based on the original project budget after the completion of the project and the actual conditions in the project operation process. The client and the decoration company will conduct the liquidation. As the current home decoration market has not formed a new order for pricing, the following situations will often occur during the construction process, which will cause the two sides to have greater objections on the issue of increase and decrease of many budgetary expenses. Joy home network

â–  Before the renovation, the drawings can only guide the construction, and the actual operation will often have major changes.

â–  There is a wide variety of decoration materials and the market price adjustment is not standardized.

â–  There are various unpredictable changes caused by both parties during the renovation process, etc. These phenomena have emerged as an objective factor in home improvement projects. To deal with these problems can not only avoid waste but also properly resolve the differences between the two parties. This requires the customer to have the common knowledge of the project's final accounts, and the way and content of the solution.

The most likely problems in the final accounts

â–  Ignore the original records in construction. Because there are often factors such as rushing and arbitrary changes in construction, if the reasons are not recorded in detail and the responsibilities are separated, it will cause difficulties for the final accounts.

â–  The identification of construction is ambiguous. For example, the identification of materials, the recognition of quality, and the identification of projects are often caused by the inconsistency of understanding between Party A and Party B.

â–  Differences in final accounts. There are differences in the three final accounts of the country's fixed final accounts, market bargaining accounts, and contract final accounts. If there is no consensus before construction, the construction will be rushed. It is easy to cause disputes. Reasonable final accounts should be based on complete construction source materials, such as project confirmations, material confirmations, design change orders, construction change orders, and on-site sporadic visa forms. Through the negotiation and understanding of both parties, Party A and Party B can reach the final project cost standard. .

Decoration project settlement

Decoration project settlement

Decoration project accounts

Including project settlement and project completion settlement

Settlement of project price

1. Definition: Before the start-up of the construction enterprise, according to the contract, it shall pre-acquire a certain amount of project allocation money to the construction unit price, and in the construction process, according to the amount of the engineering progress completed, the construction company shall submit the completed project volume report and project. Price settlement list, submitted to the construction of the payment unit to complete a settlement of the project payment.

The project price will be settled for start-up preparation and payment settlement

Construction progress settlement

Starting preparation payment settlement

Example 1: The construction cost for contracting a building decoration project is 6.5 million yuan. Before the contract stipulates that the contract is to be started, Party A shall prepay 25% of the price as the prepaid starting material payment.

Solution: Prepayment for start-up allocation = 650 × 25% = 1.625 million

Project progress

From the deduction point: After the progress payment is paid to a certain limit, it is necessary to start deducting the prepayment in advance. This prepayment limit is called the deduction point.

Starting point = contract construction cost - (prepaid starting material payment / percentage of main material cost)

Prepaid stocks should be deducted = (Accumulated production value - starting point) × percentage of main material costs

Project progress calculation example

Example 2: For the project of Example 1, statistics show that the percentage of main materials costs is 64%, and the contract stipulates monthly settlement. The output value is set at 1.1 million yuan in February and 1.45 million yuan in March. The monthly output value of 2 million yuan is completed. How to settle the project price

Project Progress Calculation Example (continued 1)

Solution: (1) The prepaid starting material payment is 1.625 million yuan

Starting point:

650-(162.5÷64%)=396.09 ten thousand yuan

(2) February

1.1 million yuan <396.09 million yuan, actual payment 1.1 million yuan

March:

110+145=255<396.09 million yuan, actual payment of 1.45 million yuan

April:

110+145+200=455> 3,609,900 yuan, it should be deducted to pre-paid starting materials

Deducted prepaid starting allowances = (455-396.09) x 64% = 377,000 yuan

Therefore, the actual payment in April = 200-37.7 = 1.623 million yuan

Project progress calculation example (continued 2)

(3) The calculation formula after reaching the buckle point is:

Prepaid stocks should be deducted = Output value completed in the month × Percentage of main materials

Payable in the month = Finished output value in the current month - Prepaid stocks should be deducted

Example 3: The output value of 900,000 yuan was completed in May. The project was completed at the end of June. In the first five months, 110+145+200+90=5.45 million yuan was completed. In June, 650-545=1.05 million yuan should be completed. , how to settle in June. (In June, 5% of project cost should be deducted as a reserve)

Project Progress Calculation Examples (Continued 3)

Solution: May

Deducted prepaid starting material payment = 90 x 64% = 576,000 yuan

Settlement money = 90-57.6 = 324,000 yuan

June

Deducted prepaid starting material payment = 105 x 64% = 576,000 yuan

Deductible retention money = 650 x 5% = 325,000 yuan

Settlement money = 105-67.2-32.5 = 53,000 yuan

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