D.C. Small Business Resiliency Fund

October 7, 2020

Is Your Small Business Eligible for the Recent D.C. Grant of $10,000?

Just this morning, the application window opened up for small businesses to apply to the Small Business Resiliency Fund. This fund is an element of D.C.’s comprehensive effort to assist businesses with operations as they bob and weave through the weeds of the COVID-19 pandemic. The fund aims to protect people, assets, and presence and will contribute $3 million in emergency operational funding.

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Ripple Effects of COVID-19 on the Construction Industry

October 5, 2020

Fluor Hits the Floor – $1.7B Loss: A Wakeup Call for the Construction Industry

The Texas-based construction company Fluor recently announced its 2019 financial results, revealing staggering figures brought on by the COVID-19 pandemic. This case sheds light on harsh truths and the new reality for the construction industry. Here’s what else you need to know:

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Lowering the Bar on Performance and Payment Bonding

June 23, 2020

Acquiring or increasing your firm’s bonding capacity can open a whole new market of jobs. It can allow you to take on a multitude of public works projects or larger, more profitable, higher-profile private jobs that require a more hearty bonding capacity than what you, or your agent, are used to.

The traditional method of laying out up to 20% of the bond value in cash collateral may be uncalled for if you approach your agent in the right way with the following cash-saving opportunities.

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Crunching Numbers for Multiple Corporations

June 23, 2020

It might be advantageous from a tax standpoint to run a business through multiple entities. For example, a construction company might form a separate company to own and lease its trucks and equipment back to its related entities. Or a corporation might transfer appreciated property to an affiliated corporation in order to limit risk in case it is sued.

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Use Financial Statements to Make a Solid First Impression

June 23, 2020

Financial statements are a must-have for any organization. The balance sheet reveals how much its assets and liabilities are worth based on historic costs. The income statement tells investors and lenders how profitably and efficiently the company has performed during the accounting period. The statement of cash flows details sources and uses of cash from operating, investing and financing activities. All this is relevant information for company insiders, as well as for lenders, bonding companies and other stakeholders.

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Take Control of Your Firm’s Debt

June 8, 2020

Creating a formal debt management plan, rather than borrowing haphazardly, can save your firm thousands or even tens of thousands of dollars in interest.

Following certain best practices and using a structured approach to your company’s debt plan is part of an effective construction finance, accounting and tax strategy. First, create a table that lists all current debt, including working capital lines of credit, loans of any kind, any interest bearing notes or other financial obligations. Don’t include Accounts Payable.

Here is an example

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10 Tax Elections to Save Money on Your 2019 Return

February 13, 2020

2020 is a presidential election year. You’ll have an opportunity to cast a vote for your favored presidential candidate in November, but you can make several other key “elections” this year when filing your 2019 tax return. These elections may be influenced by the Tax Cuts and Jobs Act (TCJA), as well as the year-end spending package that was signed late last year. 

Here are ten important choices that individuals and small business owners can make this tax season.

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Four Ways to Keep Cash Flow High During Busy Season

February 4, 2020

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.

This type of project financing concern is not yours alone. All construction contractors face this type of project financing snafu to some degree. The basic problem is your firm gets paid months after you need the money to run your projects.

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Joint Ventures – How They Can Open Doors

February 4, 2020

Joint ventures are common in the construction industry, especially with large long-term projects. These collaborative arrangements allow construction firms to work together, for a limited time period, on one or more construction projects.

The upsides include pooling of expertise and resources, broader geographic reach, reduced risk, and enhanced financing and bonding capacity. But joint ventures also have potential pitfalls, so they need to be set up and managed with care.

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