Real Estate
Construction Change Order — Scope Increase
Recording additional costs approved under a variation order from the developer to the contractor.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Construction in Progress (CIP) | Asset (+) | 75,000.00 | - |
| Accounts Payable (Contractor) | Liability (+) | - | 75,000.00 |
💡 Accountant's Note
Approved change orders increase the total construction cost. They are capitalized into CIP and increase the eventual cost of the completed building.
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