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Fight Back Against Internal Fraud

Internal Fraud

Internal fraud can take a toll on your operation. Here are some tips to fight against it.

Internal fraud drains approximately $4 trillion annually from global businesses, according to an estimate by the Association of Certified Fraud Examiners (ACFE).

The median loss from internal fraud at companies in the construction industry is $227,000, according to ACFE’s latest Report to the Nations. Read more

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Apply the Critical Path Method to Manage Cash Flow

Cash Flow

One way to help ensure your company meets it’s cash flow and financial goals is to apply a form of critical path analysis.

Construction project financing and cash flow management are unique for several reasons.

First, start-up construction companies are very easy to form with the “two men, tools, and a truck” business model. Because of this, credit and business history often are not extensive as the positive histories that typically give businesses access to large sums of capital to start the business. Read more

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How Does a Hold Harmless Clause Work in the Construction Industry?

Hold Harmless

General contractors and owners commonly use hold harmless clauses to reduce their exposure to risk, thereby helping them maintain lower insurance premiums.

Construction work, by its very nature, is a high-risk type of business. It usually isn’t a matter of if a loss occurs, but when and how much. When a loss does occur, such as an electrical wiring fire, all the parties involved with the project generally point the finger at the other parties. Read more

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Four Ways to Keep Cash Flow High During Busy Season

Cash Flow

How do you keep ahead of the costs of starting a new job while you wait to be paid for the last one?

Everyone struggles to keep up when business really takes off. Projects come all at once. You may hire additional field workers to meet the demand. Payroll is stretched because payments which come in on your new projects lag months behind the large sums you lay out weekly to pay your workers. Read more

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Tax Reform for Construction Contractors

Contractors

Construction contractors should start strategizing their businesses tax plans in light of the new law.

By Justin Gipp and Jason Dudas, CPA 

In December 2017, Congress signed the Tax Cuts and Jobs Act. There are many changes in the new tax bill that will cause varying effects on businesses and individuals. As the dust starts to settle on the new tax bill, most businesses expect their income tax expense to decrease. However, a general understanding of the new tax law is necessary to effectively make tax planning decisions for your business. Business owners can start strategizing their plan by reviewing the five most significant changes that are expected to affect construction contractors. Read more

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Contractors, Don’t Wait To Act On Revenue Recognition

By Jody Hillenbrand and Luis Torres

Jan. 1, 2019, is quickly approaching. For most privately held construction companies, this is the implementation deadline for the new revenue recognition standard, Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers. The time to act is now, especially for contractors with projects lasting over 12 months. A contract that starts now, but extends into 2019, will be subject to the new standard.  Read more

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Beware: CGL Policies Don’t Cover Faulty Work

CGL policiesBuilders and contractors who buy commercial general liability (CGL) insurance policies with the impression that they will keep them safe from allegations of inadequate or faulty work must be aware of what their policies cover. It’s important to know that a CGL policy does not provide coverage for work that is faulty.

In order to qualify for payment under a CGL policy, there must be a specific type of occurrence that causes property damage. The terms in these policies define an occurrence as an accident. This includes repeated or continuous exposure to conditions that result in bodily injury or property damage. The damages or injuries must occur during the policy period in order to qualify for coverage. These injuries or damages must not be intentional. Read more

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Tax Blueprint for the Construction Industry

tax gap

The IRS has issued documents specifically directed at the construction industry in regards to the new tax code.

The IRS continues to zero in on what it calls the “tax gap” — the amount between the taxes that are voluntarily paid and the amount the tax agency believes is actually due.

To this end, the IRS has issued a series of documents to provide better understanding of the tax code. One example is specifically directed at the construction industry.

The tax agency emphasizes instances where taxpayers failed to report, or under-reported, income from construction activities. This applies to individual workers as well as contractors and subcontractors. Following are the highlights: Read more

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How Can Contractors Best Mitigate Rising Prices?

By Jason Dudas

Contractors are often dependent on the price of materials and labor when planning and completing a project.  As the August Bureau of Labor Statistics (BLS) data showed signs of a general decrease in inflation rate, pricing for final demand construction has been deviating from that of the overall economy. The accelerating rate of construction inflation is evidenced not only in the overall trend of specific products and materials, but also in the producer price index (PPI) for completed building types.

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Is 2017 The Year Things Change For The Property Industry?

By Ian Shapiro

Technology Innovations Property Industry

Technology innovations are set to help the property industry move forward in 2017.

Technology has been a disruptive force in most industries and sectors over recent years. But in the real estate and construction (REC) sector, widespread adoption of new technologies has lagged somewhat. Indeed, the adoption of technology in property – or ‘PropTech’ – has fallen a little short of its anticipated take-up. For example, in the U.S., the construction industry is several years behind many other industries with regards to technology with many companies still using manual systems for project planning and management. That’s why construction remains far behind in reaping the benefits of advanced data and analytics, drones, automation and robotics.

However, 2017 is set to be the year the floodgates open for PropTech in the global REC sector, and we’ve looked at some key technologies you should be keeping an eye on in the industry this year.

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