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Sage Construction Management Ideas Portal
Status Future consideration
Categories Prime Contracts
Created by Gilbert Sanchez
Created on Jul 24, 2024

Prime Contracts

Combine Lump Sump and Cost Plus items on the same Prime Contract

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    David Holler
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    Jul 25, 2024

    Currently, if a Prime Contract is Fixed Lump Sum Contract Type, you can have CO (change orders) that are Cost Plus and vice versa. Would that resolve the concern? Also, since both contract types are different revenue recognition methods, there would be an issue with GAAP. It would also change or skew the revenue recognition on the Financial WIP reports. Any thoughts?