Hi guys this is my first blog pls ro like my blog after reading…Cost of work certified all building contractors receive payment periodically known as running payment on the basis of architect or surveyor certificate but payments or not equal to the value of the work certified a small percentage of the amount due to retained security for any defective work which may be discovered later within the guarantee period cost of work certified is equal to total cost of date minus cost of work and certified plus material in hand plus site work and certified represents the cost of the work which has been carried out by the contractor but has not been certified by the contract architect it is always shown as price retention money a contractor does not receive full payment of the work satisfied by the surveyor contracting returns say amount say 10% to 20% to be paid after sometime when it is ensured that there is no fault in the work carry doubt by contractor if any deficiency or notice in the work it is to be rectified by the contractor before the release of the retention money which provides are safeguard against the risk of loss due to Faculty workmanship National profit represents the difference between the value of work certified and cost of work certified National profit is equal to value of work satisfied minus cost of work to date minus cost of work not at certified estimated profit is the excess of the contract price over the estimated total cost of contract profit or loss on incomplete contract to determine the profit to be taken to profit and loss account in the case of incomplete contract the following four situation may arise less than 20% if it is equal to or more than 25% but less than 50% 1/3 of national profit into cash received divided by work certified formula for competition of percentage of completion percentage of completion is equal to value of work satisfied divided by contract price into 100 under cost plus contract the contract price is certified by adding percentage of profit to the total cost of the work such type of contract or entered into when it is not possible to estimate the contract cost with reasonable accuracy due to unstable condition of material labour service extra the advantages are assured of a fixed percentage of profit there is no risk in caring any losses on the contract it is useful specs specially when the work to be done is not definedly fixed at the time of making the estimate contracting can be ensure himself about the cost of the contract has he is empowered to examine the book and document of the contractor to ascertain the variety of the cost of the contract disadvantage may not have any inducement to avoid wastage and affect economy in production to reduce cost.