Certify Formula Contract For Free

Cost of Work Certified. = Cost of work to date - (Cost of work uncertified + Materials in hand + Plant at site) Cash Received. = Value of work certified - Retention money.

Work certified is the work completed and certified by the engineer and work uncertified is that which is completed but not certified by the engineer. Work certified and work uncertified are part of work in progress and to be recorded in contract account.

Value of Work Certified = Contract Price x Work Certified as % of Contract Price. = Cash received / Cash received as % of Work Certified.

Meaning of Work Certified This money is given on the basis of work done. So, any part of construction which is completed by contractor will be work certified if it is certified by an authority. Authority may be independent engineer or architect who can estimated the work.

This is that part of the work-in-progress which has been approved by the contractee's architect or engineer for payment. Work certified is valued at contract price (i.e , selling price), and includes an element of profit.

The work done under the contract shall be judged by the contractees architect, surveyor, or engineer who will issue a certificate stating the value of work done so far and approved by him such work is known as work certified.

(v) Workinprogress In Contract Accounts, the value of the workinprogress consists of: (a) the cost of work completed, both certified and uncertified, (b) the cost of work not yet complete, and (c) the amount of profit taken as credit.

Value of work certified = Cash Received / Cash Received as percentage of work certified.

Certify, attest, witness, vouch mean to testify to the truth or genuineness of something. certify usually applies to a written statement, especially one carrying a signature or seal.

The three most common contract types include:Fixed-price contracts.Cost-plus contracts.Time and materials contracts.Jan 29, 2021