How is zakat paid on the capital of a contracting business that moves from one project to another, and whose profits are not calculated until after the completion of each project?

If your contracting business focuses on building properties for yourself and then selling them, zakat is due on the value of the existing property upon the completion of a full year (hawl) on the original capital. The land, what has been built on it, and the building materials in stock are all appraised, and one-quarter of a tenth (2.5%) of the total value is to be given. Zakat does not lapse due to the absence of cash; rather, its payment may be delayed.

However, if your business focuses on building for others, zakat is due on your capital, added to your profit. Similarly, the materials you purchase that are used in construction are to be appraised, and their value added to the capital and profit upon the completion of a full year, and one-quarter of a tenth (2.5%) of the total is to be given.