# Construction in progress

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{{More citations needed|date=April 2015}}

An [accountancy](/source/accountancy) term, '''construction in progress''' ('''CIP''') [asset](/source/asset) or '''capital work in progress''' entry records the cost of construction work, which is not yet completed (typically, applied to capital budget items). A CIP item is not [depreciated](/source/depreciation) until the asset is placed in service. Normally, upon completion, a CIP item is reclassified, and the reclassified asset is capitalized and depreciated.

While costs are added to the construction in progress, related CIP account is debited with corresponding credits to accounts payable, accrued expenses, inventory, cash, and others.  When the construction in progress is completed, related long-term asset account is debited and CIP account is credited.<ref>{{cite web|url=http://simplestudies.com/what-is-construction-in-progress.html/page/2|title=What is construction in progress (CIP)?|work=Simplestudies}}</ref><ref>{{cite web|url=https://www.unityestimating.com/|title=Unity Estimating|work=Unityestimating}}</ref>

==References==
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{{DEFAULTSORT:Construction In Progress}}
Category:Asset
Category:Fixed asset

{{Accounting-stub}}

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Adapted from the Wikipedia article [Construction in progress](https://en.wikipedia.org/wiki/Construction_in_progress) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Construction_in_progress?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.