Amortization
The process of gradually writing off the initial cost of an asset over a period.
Amortization refers to the gradual reduction of debt through regular payments, impacting financial planning and budgeting. It is crucial for managing cash flow, optimizing financial performance, and supporting investment strategies. By providing a structured repayment plan, amortization supports efficient financial management, reduces risks, and contributes to successful project delivery by ensuring that financial obligations are met, aligned with project schedules, and capable of supporting long-term financial stability and growth.
Used in a sentence
The mortgage was set up with a 30-year amortization schedule.
Synonyms/variation
Depreciation
Stay updated on what’s happening in construction.
Subscribe to Blueprint, Procore’s free construction newsletter, to get content from industry experts delivered straight to your inbox.
Learn MoreLearn more about Amortization
Construction Accounting Software: Key Features and What To Look For
Commercial contractors manage large and complicated budgets that can have slow payment rates and volatile costs. They also have to accurately allocate job costs based on specific factors such as project, phase, or cost codes. Compliance requirements add another layer of complexity to construction budgets, since contractors have to track measures such as prevailing wages […]
BIM for Construction Cost Control & Budget Management
As the construction industry advances in its digital transformation journey, building information modeling (BIM) is becoming increasingly common. Teams and individuals who push back against using the 3D model and its associated processes usually have one common complaint: cost. Certainly, there’s some investment in BIM software, plus the training required to help team members use […]
Construction Invoice Factoring: A Quick Guide
Construction companies need to maintain consistent cash flow. Projects can take years to complete, and delays and unforeseen events may keep expenses mounting. Adding to this load are typically high upfront costs, like materials, equipment and labor. One way to stay solvent while waiting for clients to make their final payments is construction invoice factoring. This […]
Sales Tax on Construction Materials: Who Pays It and When
Sales tax plays a major role in construction, influencing everything from material costs to contract pricing and compliance requirements. But deciding when and how sales tax on construction work applies isn’t always straightforward. With rules varying by state, contract type and client, even experienced contractors can run into unexpected tax liabilities. Whether submitting a local […]
How can we improve this glossary entry?
By clicking this button, you agree to our Privacy Notice and Terms of Service.