Joseph Heneghan No Comments

Four Ways to Keep Cash Flow High During Busy Season

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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Joseph Heneghan No Comments

Joint Ventures – How They Can Open Doors

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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Tu Nguyen No Comments

TCJA Depreciation and Other Deduction Changes

By Jason Dudas, CPA

Under the Tax Cuts and Jobs Act, contractors are now able to take a deduction for the full cost of machinery and equipment purchase made each year. This new provision is referred to as 100% bonus depreciation and there is no limitation on the amount of purchases. The provision is available for assets acquired and placed-in-service after September 27, 2017.

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Christine Hradsky No Comments

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

Christine Hradsky No Comments

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

Christine Hradsky No Comments

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

Christine Hradsky No Comments

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

Christine Hradsky No Comments

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

Christine Hradsky No Comments

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