Percentage-of-completion (PCM) is a technique of revenue recognition which occurs when a contractor records money based on how much of the project they've completed. Because PCM is an accrual approach, earnings are recognized when the contractor invoices, not when they are paid. Contractors can seek advice from construction CPAs on a variety of PCM approaches for determining how much of a project "count" as completed. Cost-to-cost approaches, physical completion methods, and labor methods are among them. For tax purposes, the IRS mandates contractors with revenue exceeding a specific yearly average or contracts of a certain length to employ this method.
IES Winter 2026 delivers construction beta with project phases, cost groups, AIA invoicing, and negative change orders, plus parallel approvals, AI agents, BI tools, and MAC migration support. RedHammer breaks down every feature with honest takes on what still needs work.
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