Construction in Progress
2 definitions

Construction in Progress

A temporary classification of assets under construction. The costs of new construction and capital improvements are accumulated in a CIP account while the asset is under construction. CIP accounts are only utilized for construction of real property assets and shipbuilding (including ship conversion, alteration, or repair). Under certain contract provisions CIP accounts include all costs incurred to bring the asset to a form and condition suitable for its intended use.

Construction in Progress

A general ledger account that reflects that cost of construction work undertaken on capital projects, but not completed as of the end of the accounting period.

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About this term

Construction in Progress has been defined 2 different ways in documents like DoD Financial Management Regulation Glossary, Glossary of State Budget and Accounting Terms.

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