Form FAQs

 CC-23803 - Building Finishing Contractors

 Categories

• Sector Questions
• Form Questions

 Questions

• Sector Questions

1.  What type of activity does the 2007 Economic Census of the Construction Sector cover?
2.  What activities determine whether my project is a construction sector activity and should be included in the 2007 Economic Census?
3.  I do not believe that my company or establishment belongs in the construction sector. What should I do?
4.  Fifty percent or more of this establishment's revenues were not derived from activities listed in items 5 (Sales, Shipments, Receipts, or Revenue) and 22 (Detailed of Sales, Shipments, Receipts, or Revenue) considered to be construction activities. Does this mean that I do not have to fill out the questionnaire?
5.  What exactly is a "construction establishment"?
6.  What are some examples of "construction establishments"?
7.  How long will it take for me to complete this questionnaire?
8.  Our company only keeps records at the company or divisional level. How should I complete this form?
9.  What's new on this questionnaire since the last Economic Census?



• Form Questions

10.  What should I include or exclude from "Sales, Shipments, Receipts, or Revenue" (Item 5)?
11.  How to report Rental Payments (Item 14)?
12.  What should I include or exclude from "Employment and Payroll" (Item 7)?
13.  What should I report for inventories in Item 9?
14.  What are depreciable assets (Item 13)?
15.  What are capital expenditures (Item 13B)?
16.  What should I report for "Cost of Materials, Parts and Supplies" in Item 16A1?
17.  What should I include or exclude from reporting in "Cost of Construction Work Subcontracted Out" (Item 16A2)?
18.  What should I report for "Other Operating expenses" (Item 16B)?
19.  I am not sure how to classify the type of construction work my establishment performs (Item 23)?
20.  How should I report "Ownership of Construction Projects" for work done on interstate highways (Item 26A)?

 Answers

• Sector Questions




1.  What type of activity does the 2007 Economic Census of the Construction Sector cover?

The 2007 Economic Census of the Construction Sector covers domestic operations of establishments primarily engaged in these broad types of activities:



• Building Construction by general contractors, specialty trade contractors, design-builders, developers, or construction managers.


• Heavy Construction includes work on non-building structures, such as highways, utility related structures, and water projects by general contractors, specialty trade contractors, design-builders, developers, or construction managers.


• Land Subdivision represents subdividing and servicing or raw land into lots for sale by landowner to a builder.


• Specialty Trade Contractors represents specialty trade activities, such as plumbing, electrical, masonry, carpentry, painting, excavation, flooring, glass, metal, or concrete work, and other construction activities performed on building and non-building structures.



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2.  What activities determine whether my project is a construction sector activity and should be included in the 2007 Economic Census?

Construction includes the following types of activities: Construction includes the following types of activities:

• New or original construction
• Additions, alterations rehabilitation, remodeling or reconstruction
• Maintenance, repair or service work.

If this establishment performs any of these activities, please complete the 2007 Economic Census form.

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3.  I do not believe that my company or establishment belongs in the construction sector. What should I do?

Please review what broad kinds of activities are in the Construction sector included on the online Portable Document Format (PDF) on the 2007 Economic Census, Construction Sector, Information Sheet. Additionally, review for each form the list of Kind of Business Activities shown in item 22 (Detail of Sales, Shipments, Receipts, or Revenue) considered to be construction activities included on the BHS online Portable Document Format (PDF) Samples of the 2007 Economic Census Forms, Construction sector. If 50 percent or more of these establishments 2007 revenues were derived from these kinds of activities indicated, then your establishment is considered in the construction sector and you should complete the entire questionnaire.

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4.  Fifty percent or more of this establishment's revenues were not derived from activities listed in items 5 (Sales, Shipments, Receipts, or Revenue) and 22 (Detailed of Sales, Shipments, Receipts, or Revenue) considered to be construction activities. Does this mean that I do not have to fill out the questionnaire?

You still need to complete the following items: 1,2,3,4,5,7,22 and 30 and return to the U.S. Census Bureau. For items 5 and 22 indicate what the amounts were revenues from activities you did not consider to be construction activities. Additionally, review how to report in item 22 (Detail of Sales, Shipments, Receipts, or Revenue) construction activities an non-construction activities, refer to pages 3 and 4 included on the BHS online Portable Document Format (PDF) of the 2007 Economic Census, Construction Sector, Information Sheet.

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5.  What exactly is a "construction establishment"?

Construction establishments are those, which have a relatively permanent office, or other place of business, where the usual business activities related to construction are conducted. Generally, a relatively permanent office is one, which has been established for the management of more than one project or job and is expected, to be maintained on a continuing basis.

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6.  What are some examples of "construction establishments"?

• The office or branch office of a construction contractor or builder, even if the office is in your home.
• The office or shop of a special trade contractor who specializes in activities such as plumbing, painting, carpentry, etc.
• A Construction division or subsidiary of a manufacturing, mining or other business company, which undertakes construction for the parent company or others.
• A separate legal entity which has been established to carry out a given project, part of a project, or to undertake a construction project as a joint venture.

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7.  How long will it take for me to complete this questionnaire?

Public reporting burden or the length of time to complete this questionnaire is estimated to take an average of 2.3 hours. This includes the time to review the instructions, search existing data sources, gather and maintain data needed and time to complete and review the collection of information.

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8.  Our company only keeps records at the company or divisional level. How should I complete this form?

If any of the items requested are maintained in records at a parent company or divisional level, allocate the cost of each construction establishment for which you received a questionnaire. For example, item 9 (Value of Inventories) and item 13, value of building and equipment assets owned by the parent company should be assigned to each establishment that the establishment is responsible for as if it owned them. In the case of building and equipment, if the establishment is a tenant or lessee, item 14, rental costs should be adjusted accordingly.

Expenses in item 16B (Other Operating Expenses) incurred by the parent company on behalf of the establishment should be allocated to each establishment on an appropriate basis (e.g., the ratio of the payroll of each construction establishment to the total company payroll or revenues). The costs should not be duplicated on any establishment reports.

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9.  What's new on this questionnaire since the last Economic Census?

Item 16B, (Other Operating Expenses): We have expanded the collection of operating costs and expenses this establishment to be more comprehensive than in the past. Lines 1,2,3,4,7,9, 10, and 11 are new. Only direct construction services should be reported in item 16A, all other related costs (survey, architect, engineering, and other professional services) should be reported in item 16B. See specifics on page 3 included in the online Portable Document Format (PDF) of the 2007 Economic Census, Construction Sector, Information Sheet.

Item 26D, (Franchise) only applies to the CC-23801, CC-23802, CC-23803, and CC-23804 report forms.

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• Form Questions




10.  What should I include or exclude from "Sales, Shipments, Receipts, or Revenue" (Item 5)?

Exclude sales, shipments, billings, receipts, or revenue from business operations in foreign countries or outside the 50 states and the District of Columbia.

In item 5A report your 2007 receipts for construction work.



INCLUDE:

• Work on new construction, additions, alterations, reconstruction, maintenance, repairs and service work
• Receipts or billings for construction work under any type of contract- general, special trade, design build, construction, management, engineer-construct, turnkey, etc.
• Cost of labor materials, overhead, and profit.
• Sales of houses and other buildings you built which were sold during 2007.

EXCLUDE:

• The cost of land other than site preparation
• The purchase cost or estimated value of raw land from the value of construction work.

In item 5B report the receipts for all other non-construction business activities done by this establishment in 2007.



EXCLUDE:

• Non-operating income such as interest, dividends, or the sale of fixed assets.

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11.  How to report Rental Payments (Item 14)?

If this establishment is part of a multi-establishment company or a subsidiary rented property for use of this establishment and paid the rent, the rent should be reported in item 14 as if the establishment paid it.

However, if this establishment rented buildings or equipment from the parent or affiliate as a tenant, then the value of assets should be reported in item 13. Exclude capital leases (leases with a contract to own at end of the lease) as well as rentals of assets owned by parent reported in item 13.

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12.  What should I include or exclude from "Employment and Payroll" (Item 7)?

For item 7A, report the number of employees on the payroll of this establishment during the specific pay periods listed on the form.

For item 7B, reported payroll should equal the taxable Medicare wages and tips reported on the Internal Revenue Services (IRS) Form 941, Employer’s quarterly Tax Return, exclude employer’s cost for fringe benefits, and definitions as described in Circular E, Employer’s Tax Guide.



INCLUDE:

• All permanent, full-time or part-time employees.
• Salaried officers and executives of a corporation.
• Employees on paid sick leave, paid holidays and paid vacations.
• The spread on stock options that are taxable to employee wages.

EXCLUDE:

• Subcontractors and their employees.
• Full-or part-time leased employees whose payroll was filed under a Professional Employer Organization’s Employer Identification Number.
• Temporary staffing obtained from a staffing service.
• Proprietors or partners of an unincorporated company.

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13.  What should I report for inventories in Item 9?

Report the value of all inventories of material and supplies that are owned by this establishment or assigned to it at the end of 2007 and 2006 regardless of where the inventories are held. If this establishment is part of a multi-establishment company, the parent company should assign to each establishment those inventories that the establishment is responsible for as if it owned them and this establishment should include the value of inventories in this report. Inventories should not be duplicated on any establishment reports.

EXCLUDE:

• The value of inventories owned by unaffiliated parties held by this establishment.

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14.  What are depreciable assets (Item 13)?

Depreciable assets are the buildings, structures, machinery, and equipment owned by this establishment or its parent for which depreciation accounts are ordinarily maintained. If this establishment is part of a multi-establishment company, the parent company should assign to each establishment building and equipment that the establishment is responsible for as if it owned them. This establishment should include these as part of it’s beginning balances, additions, and disposals as appropriate as well as the allocation of related depreciation expenses. For example, if this establishment maintained a tenant relationship with the parent company or a subsidiary, and paid "rent" for the use of either buildings or equipment, do not report the value of this "rent". Instead, in item 13 report the gross value of the assets made available to this establishment as a result of this "rental" agreement as if the establishment owned them.



INCLUDE:

• Assets acquired through capital leases. If any building or equipment has been acquired under a capital leasing arrangement that meets the criteria set down by the Financial Accounting Standards Board (FASB), please report the orginal cost or market value as a fixed asset and as a capital expenditure if acquired in 2007. If the lease qualifies as an operating lease, do not include the value of building and equipment as a fixed asset or capital expenditures.
• Assets acquired or produced to be leased to other as the less or under an operating lease.
• Capital expenditures for construction in progress incurred in prior periods. Report current capital expenditures in 13B, even if not completed and operational.

EXCLUDE:

• The cost of land, but include the value of land development.
• Assets leased to others under capital lease arrangements.

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15.  What are capital expenditures (Item 13B)?

Capital expenditures include current expenditures for property, equipment, and capital improvements that were or will be chargeable to the fixed assets accounts and for which depreciation accounts are ordinarily maintained. Additions to construction-in-progress for company owned projects lasting more then one year that will be added, as depreciable assets should be reported currently rather then once the project has been completed and is in use. Include the cost of capital improvements that were made during 2007 which increased the value of property or adapted it for another use. Capital expenditures for leasehold improvements (made to property leased from others) are also included. Include the value of depreciable assets acquired through mergers and acquisitions.

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16.  What should I report for "Cost of Materials, Parts and Supplies" in Item 16A1?

Report job-site, general office, and all other materials, parts, and supply costs relating to the construction and other business activities of this establishment.

INCLUDE:

• Equipment purchased by this establishment that was installed in a building as an integral part of its structure, such as elevators, heating and air conditioning equipment, etc.
• Costs after discounts for the materials, parts, and supplies that were purchased by this establishment or obtained from other establishments or your company.
• Freight and other direct charges for the materials, parts, and supplies used in 2007.
• Expendable tools that were charged to current accounts in 2007.

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17.  What should I include or exclude from reporting in "Cost of Construction Work Subcontracted Out" (Item 16A2)?

INCLUDE:

• Your payments to subcontractors for construction work.

EXCLUDE:

• The cost of non-construction work subcontracted out unless it is incidental to the primary construction activities of the subcontractor. Services such as abatement, refuse, design work or surveying should be reported in 16B.

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18.  What should I report for "Other Operating expenses" (Item 16B)?

INCLUDE:

• Costs for each of these goods and services purchased from other companies that are paid directly or incurred by a parent or affiliate for this establishment and have not been reported elsewhere in the form.

EXCLUDE:

• Salaries paid to employees of this establishment for any professional and/or technical services. These should be reported in item 7.
• Materials, parts, and supplies used for repairs and maintenance performed by this firm’s employees.
• Lease and rental payments for equipment, building, other structure, or land by this establishment and reported item 14, Rental Payments.
• Cost of construction activities subcontracted to others and reported in item 16A, line 2.
• Cost of any utility payments if payments are included in a lease or rental payment and reported in item 14 or energy reported in item 16A, line 3.
• Income taxes, purchases or merchandise for resale, bad debts, impairment charges, interest and other non-operating expenses.

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19.  I am not sure how to classify the type of construction work my establishment performs (Item 23)?

Review how to report item 23, Type of Construction, construction activities on page 3 and 4 included on the BHS online Portable Document Format (PDF) of the 2007 Economic Census Sector, Information Sheet.

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20.  How should I report "Ownership of Construction Projects" for work done on interstate highways (Item 26A)?

Work on interstate highways should be reported as a state-owned project under State and local governments.

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