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Retention Accounting for AIA Contracts: Managing Cash Flow and Compliance
Picture this: You've just completed a $500,000 construction project. The work is done, your crew has moved on, but you've only received $450,000. Where's the other $50,000? It's sitting in retention and if you're not tracking it properly, you might never see it. For construction owners, general contractors, and subcontractors working with AIA contracts, retention isn't just a line item on payment applications. It's working capital that's temporarily out of reach, and in today
Oct 307 min read
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Managing Subcontractor Payment Obligations Under AIA Contracts
For general contractors, managing subcontractor payments effectively is essential for maintaining healthy cash flow and strong project relationships. When you're working under AIA prime contracts while managing multiple subcontractors under AIA A401 agreements, having clear payment systems becomes critical for project success. This guide walks you through practical accounting approaches for managing subcontractor payments under AIA contracts , helping you build efficient pro
Oct 224 min read
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