Construction chart of accounts
Building work brings amounts most businesses don't deal with: retention held back from progress payments, deposits for jobs that haven't started, and costs that belong to one job. The accounts below give each of them a place beside the general chart.
- By Book Keeping Pros
- Sources checked 15 Oct 2026
What this industry adds
- Part of a progress payment can be held back as retention, a security against defective work or late completion. Retention money withheld by clients keeps each job's held-back amount in view until it falls due for release. Building Commission NSW and Business Queensland each publish guidance on retention money in their state.
- Deposits clients pay before a job begins are tracked in Client deposits for jobs not yet started, apart from the progress payments on jobs already under way.
- Building work runs up job costs that aren't stock sold to customers, so they get accounts of their own, numbered beside Cost of goods sold: Subcontractor costs, Materials used on jobs, Plant and equipment hire, and Site amenities and rubbish removal. Together they show what the work itself cost.
- Building permits and inspection fees are paid job by job, while Building licence fees keep the business licensed, so the two are kept apart.
Download the chart
The general accounts and this industry's accounts in one CSV file, in code order, which opens in any spreadsheet program.
Download the CSV fileThe accounts this chart adds
| Code | Account name | Type | What goes in it |
|---|---|---|---|
| 1-1500 | Retention money withheld by clients | Asset | Amounts a head contractor or other client has held back from your progress payments as security against defective work or late completion |
| 2-1300 | Client deposits for jobs not yet started | Liability | Deposits clients have paid for jobs that have not started yet |
| 5-1100 | Subcontractor costs | Expense | Invoices from subcontracted trades for the work they do on your jobs |
| 5-1200 | Materials used on jobs | Expense | Timber, concrete, steel and other materials bought for a job and built into the work, rather than resold as stock |
| 5-1300 | Plant and equipment hire | Expense | Excavators, scaffolding, cranes and other plant or equipment hired for jobs |
| 5-1400 | Site amenities and rubbish removal | Expense | Site sheds, portable toilets, temporary fencing and skip bins for jobs |
| 5-1500 | Building permits and inspection fees | Expense | Permit, approval and inspection fees paid for individual jobs |
| 6-2100 | Building licence fees | Expense | Fees to apply for and renew the building licences and registrations the business holds |
Illustrative example only: these rows show the method and are not sourced data.
What goes in each column
- Code: A number that sorts the account into its group: 1 for assets, 2 for liabilities, 3 for equity, 4 for income, and 5 and 6 for expenses.
- Account name: The name that appears in your books and reports.
- Type: Asset, Liability, Equity, Income or Expense, which decides whether the account appears on the balance sheet or the profit and loss statement.
- What goes in it: The transactions to record against the account.
How to use it
- Set up a job or tracking category for each job, and code subcontractor invoices, materials and plant hire to both the account and the job.
- When a progress payment arrives with retention held back, note the amount against the job in Retention money withheld by clients, with when it falls due for release under the contract. Your accountant can confirm how it is recorded under your accounting method.
- Put deposits for jobs that haven't started in Client deposits for jobs not yet started, and ask your accountant when each one should move out as the job goes ahead.
- Charge permit and inspection fees to the job they were paid for, and keep Building licence fees out of job costs.
- These accounts are for the business's own money. Your accountant can say which others your business structure needs.
The chart is a CSV file, which opens in a spreadsheet program. It is not set up for importing directly into any particular accounting software, so check the format your software expects before you load the accounts into it.
Related pages
Related terms
Sources
- Key financial terms
business.gov.au, Australian Government. Current at 15 October 2026, released 9 July 2024. Checked 15 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.
- Retention money
Building Commission NSW. Current at 6 October 2026, released 6 October 2026. Checked 16 October 2026.
© State of New South Wales. For current information go to www.nsw.gov.au. Licence: CC BY 4.0.
- Payments in the building industry
Business Queensland. Current at 24 June 2026, released 24 June 2026. Checked 16 October 2026.
© The State of Queensland, Business Queensland, licensed under CC BY 4.0 Licence: CC BY 4.0.
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