Cost/Value Reconciliation, or simply CVR is the traditional practice of determining and reporting profitability on a construction project on a regular basis.
CVR is therefore the comparison of costs with value (revenue) as at a certain date, the difference being the cumulative profit or loss on the project.
Download full white paper on CVR for the construction industry
CVR actually serves two purposes, firstly it forms the basis of statutory accounts, which of course is a legal requirement, and in this respect the guidelines of Standard Statement of Accounting Practice number 9 (SSAP9 ICAEW), valuation of stocks and work-in-progress, must be followed.
The main thrust of SSAP9 is that financial statements should be prudent, that losses or potential losses should be recognized immediately and essentially that the business should not claim to be more profitable than it actually is.
Download full version of the EasyBuild Whitepaper on CVR in the Construction Industry
EasyBuild makes the Cost/Value Reconciliation (CVR) process very easy for both accountants and surveyors by presenting all the key components of CVR reporting in one smart dashboard, workbench environment.
EasyBuild CVR Module – construction industry project costing, cashflow and profitability software
EasyBuild prides itself on an extremely comprehensive project costing and CVR (Cost/Value Reconciliation) system and the ease with which project profitability and cashflow can be quickly established.
From one smart dashboard environment, all the key components of project profitability, costs, revenues, subcontractor liabilities and valuation adjustments presented in a secure and controlled environment to key personnel for input and adjustment as necessary.
All CVR data is stored over the life of the project, and CVR summary data from all projects provides the necessary data to prepare monthly management and period end financial accounts.
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