Topic Thread

WRAP / OCIP Insurance Accounting in Viewpoint

  • 1.  WRAP / OCIP Insurance Accounting in Viewpoint

    Posted 09-14-2018 11:48
    I am interested in how other contractors account for WRAP or OCIP insurance in their project and accounting systems. Specifically:

    Is the cost of the WRAP or OCIP reflected as actual job costs for your projects and in your financial statements?
    Are the impacts accounted for over the course of the project or at completion?
    We have found the actual cost of the WRAP or OCIP costs more than than our normal insurance plans, do you include the external costs as part of your burden or indirect rates?
    How do you account for contract billings that exceed what will be collected in cash and applied to the contract?
    Do you include the net amounts including WRAP or OCIP in your percent complete calculations for your projects?

    Any thoughts, or best practices would be appreciated!

    ------------------------------
    Brian Hall Hall
    Chief Financial Officer
    Nelson Pipeline Constructors
    Centennial CO

    ------------------------------


  • 2.  RE: WRAP / OCIP Insurance Accounting in Viewpoint

    Posted 09-24-2018 16:18
    ​Hi Brian
    We use accrual basis accounting, and I book the OCIP premium as a credit to the insurance payable account and a debit to insurance expense (direct cost to the job) on a monthly basis.  Since the OCIP premium is based on sales I calculate the amount by multiplying the rate times the gross billing.

    If we have change order work, the estimator includes the OCIP premium as part of the cost estimate and I book the same entry as I would for the contract billing.

    ------------------------------
    Heather Tucker BSBA, CCIFP
    Controller
    Muse Concrete Contractors Inc.
    Redding CA
    (530) 226-5151
    ------------------------------