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?
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?