Order Intake
The term order intake refers to the amount of a construction contract.
Orders received are largely divided into orders received from prime contractors and orders received from subcontractors. While orders received by main contractors represent the amount of construction work directly contracted by the client (owner), orders received by subcontractors represent the amount of construction work contracted by main contractors and subcontractors as subcontractors.
In general, orders received are recorded in full when construction work is ordered, so from the perspective of a construction company, orders received will be recorded as part of the amount of construction work on hand, and in the future as the amount of work performed or the volume of work completed.
For this reason, the relationship between the amount of orders received, the amount of work on hand, and the amount of work completed can be expressed as follows.
The relationship between orders received, construction work and construction work on hand is as follows:
Amount of work on hand at the end of the previous fiscal year + amount of orders received in the current fiscal year – amount of work performed in the current fiscal year = amount of work on hand at the end of the current fiscal year
In addition, orders received can be used as an indicator of construction demand (construction demand/civil engineering demand), which refers to the willingness of clients to place orders for construction work.
The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) uses the Survey of Current Orders for Construction Projects as a widely used statistical data source for the amount of orders received.
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