---
title: "Construction Chart of Accounts | Ledgerbrook"
source: https://ledgerbrook.com/tools/chart-of-accounts/construction/
description: "QuickBooks Online chart of accounts for construction companies. Includes retainage, WIP, and free QBO CSV download."
---

Industry Accounting BlueprintContractor job-costing and retainage conventions

# Construction & General Contractors Chart of Accounts

A construction chart of accounts must separate direct job costs into 5000-series accounts (Labor, Materials, Subcontractors, Equipment) from general overhead. Critical balance sheet accounts include Retainage Receivable (1150), Retainage Payable to Subcontractors (2110), and Costs in Excess of Billings (1300) / Billings in Excess of Costs (2120) for percentage-of-completion compliance.

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QuickBooks Online Ready CSV

Includes all 41 numbered accounts, types, and official QBO detail types.

[Download QBO CSV](/downloads/chart-of-accounts/construction-chart-of-accounts-quickbooks.csv)

Industry Gotchas

## Key Accounts Most Bookkeepers Set Up Incorrectly

Account #1150Other Current Assets

### Retainage Receivable

Why It Matters:

Tracks withheld contract payments (typically 5%–10%) until project substantial completion and punch list sign-off.

⚠️ Common Mistake:

Booking retainage as bad debt or ignoring it, causing gross billing misstatements on AIA G702 applications.

Account #1300Other Current Assets

### Costs in Excess of Billings (Underbillings)

Why It Matters:

Captures unbilled project costs incurred on percentage-of-completion contracts.

⚠️ Common Mistake:

Expensing all job costs immediately without deferring unbilled WIP, severely distorting monthly P&L swings.

Account #2110Other Current Liabilities

### Retainage Payable to Subcontractors

Why It Matters:

Tracks amounts withheld from subcontractor progress billings pending inspection and release.

⚠️ Common Mistake:

Paying subcontractors in full before receiving conditional lien waivers and architect approval.

Account #5030Cost of Goods Sold

### Subcontractor Expense (1099)

Why It Matters:

Isolates 1099 subcontractor payments directly attributable to active job sites.

⚠️ Common Mistake:

Lumping subcontractors with in-house payroll wages or office repair contractors.

Account Hierarchy

## Complete Construction Account Tree

All (41)Assets (1000s)Liabilities (2000s)Equity (3000s)Revenue (4000s)COGS (5000s)Expenses (6000s)

| Code | Account Name | QuickBooks Account Type | QuickBooks Detail Type | Action |
| --- | --- | --- | --- | --- |
| 1010 | Operating Checking | Bank | Checking | Copy |
| 1020 | Payroll Checking | Bank | Checking | Copy |
| 1100 | Accounts Receivable | Accounts Receivable (A/R) | Accounts Receivable (A/R) | Copy |
| 1150 | Retainage Receivable | Other Current Assets | Other Current Assets | Copy |
| 1200 | Inventory - Direct Materials | Other Current Assets | Inventory | Copy |
| 1300 | Costs in Excess of Billings (Underbillings) | Other Current Assets | Other Current Assets | Copy |
| 1400 | Prepaid Commercial Insurance & Bonds | Other Current Assets | Prepaid Expenses | Copy |
| 1510 | Commercial Vehicles | Fixed Assets | Vehicles | Copy |
| 1520 | Machinery & Heavy Job Equipment | Fixed Assets | Machinery & Equipment | Copy |
| 1590 | Accumulated Depreciation | Fixed Assets | Accumulated Depreciation | Copy |
| 2010 | Accounts Payable | Accounts Payable (A/P) | Accounts Payable (A/P) | Copy |
| 2020 | Commercial Credit Card | Credit Card | Credit Card | Copy |
| 2110 | Retainage Payable to Subcontractors | Other Current Liabilities | Other Current Liabilities | Copy |
| 2120 | Billings in Excess of Costs (Overbillings) | Other Current Liabilities | Other Current Liabilities | Copy |
| 2210 | Payroll Liabilities | Other Current Liabilities | Payroll Tax Payable | Copy |
| 2220 | 1099 Backup Withholding Payable | Other Current Liabilities | Other Current Liabilities | Copy |
| 2510 | Heavy Equipment Loans Payable | Long Term Liabilities | Notes Payable | Copy |
| 2520 | Vehicle Loans Payable | Long Term Liabilities | Other Long Term Liabilities | Copy |
| 3010 | Owner's Capital | Equity | Owner's Equity | Copy |
| 3020 | Owner's Draws | Equity | Owner's Equity | Copy |
| 3030 | Retained Earnings | Equity | Retained Earnings | Copy |
| 4010 | Contract Revenue - Progress Billings | Income | Service/Fee Income | Copy |
| 4020 | Change Order Revenue | Income | Service/Fee Income | Copy |
| 4030 | Time & Materials Revenue | Income | Service/Fee Income | Copy |
| 5010 | Direct Job Materials | Cost of Goods Sold | Supplies & Materials - COGS | Copy |
| 5020 | Direct Field Labor | Cost of Goods Sold | Cost of Labor - COS | Copy |
| 5030 | Subcontractor Expense (1099) | Cost of Goods Sold | Cost of Labor - COS | Copy |
| 5040 | Job Site Equipment Rental | Cost of Goods Sold | Equipment Rental - COS | Copy |
| 5050 | Municipal Permits & Engineering Fees | Cost of Goods Sold | Other Costs of Service - COS | Copy |
| 5060 | Dumpsters & Job Site Cleanup | Cost of Goods Sold | Other Costs of Service - COS | Copy |
| 5070 | Job Site Safety & Small Tools (< $2,500) | Cost of Goods Sold | Supplies & Materials - COGS | Copy |
| 5080 | Freight & Direct Delivery Charges | Cost of Goods Sold | Shipping, Freight & Delivery - COS | Copy |
| 6010 | Advertising & Bid Marketing | Expenses | Advertising/Promotional | Copy |
| 6020 | Merchant & Bank Wire Fees | Expenses | Bank Charges | Copy |
| 6030 | General Liability & Workers Comp Insurance | Expenses | Insurance | Copy |
| 6040 | Estimating Software & Office Supplies | Expenses | Office/General Administrative Expenses | Copy |
| 6050 | Professional Fees - Legal & Accounting | Expenses | Legal & Professional Fees | Copy |
| 6060 | Shop & Storage Yard Lease | Expenses | Rent or Lease of Buildings | Copy |
| 6070 | Utilities & Mobile Communications | Expenses | Utilities | Copy |
| 6080 | Overhead Vehicle Gas & Repairs | Expenses | Auto | Copy |
| 7010 | Business Loan Interest Expense | Other Expense | Other Miscellaneous Expense | Copy |

No accounts found matching your query.

Reconciliation Rules

## Monthly Sanity Checks for Construction Files

- ✓Tie out Retainage Receivable and Payable against open customer and sub AIA progress billings.
- ✓Verify Work in Progress (WIP) schedules against project milestone percentage-of-completion.
- ✓Reconcile 1099 subcontractor payments and confirm valid Certificates of Insurance (COI) on file.
- ✓Clear unassigned job costs from general cost pool to specific customer project numbers.

Outsourced Production Capacity

## Managing Construction client files at your firm?

Ledgerbrook provides white-label cleanup, monthly close, and payroll reconciliation for accounting firms. We deliver fully reconciled books under your firm's brand starting at**$99/file**.

[View Firm Partnership →](/for-bookkeeping-firms/)

Frequently Asked Questions

## Construction Chart of Accounts FAQ

### How do I import this Construction chart of accounts into QuickBooks Online?

Download the pre-formatted QBO CSV file using the button on this page. In QuickBooks Online, click the Gear icon -> Import Data -> Chart of Accounts. Upload the CSV, map the columns (Account Number, Account Name, Type, Detail Type), and click Import. Ensure account numbers are enabled under Account and Settings -> Advanced -> Chart of accounts.

### What accounting standard does this Construction chart of accounts follow?

This chart of accounts is designed around the Contractor job-costing and retainage conventions. It groups direct operating costs, tax-sensitive accounts, and subledgers to ensure accurate gross margins and CPA tax preparation.

### Can I customize this template for my specific business or firm?

Yes. Once imported into QuickBooks Online, you can add sub-accounts, rename categories to match vendor naming conventions, or delete unused accounts without breaking the core financial reporting hierarchy.