Jobsites generate many things — dust, rubble, scrap metal. But they also generate a lot of information. And extracting the right financial data from an ongoing project in an accurate, timely and easily digestible manner is critical to maintaining that job’s profitability and avoiding losses. Depending on the size and nature of your construction company, […]
Category: Construction
What contractors should know about bonus depreciation
As projects heat up, construction company owners often find they must buy additional equipment or other assets to ensure project success and remain competitive. Because return on investment for high-dollar purchases can take years, finding the right tax deductions to help offset costs is critical to staying in the black. The good news is that, […]
New revenue recognition rules to “go live” soon
A new website or updated software “goes live” when it’s launched for widespread use. This, too, will soon be the case with an important accounting change for construction businesses that follow Generally Accepted Accounting Principles (GAAP). For privately held companies, Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, is due to go live […]
Think about licenses before working out of state
Construction markets can turn on a dime. One new manufacturing plant or infrastructure project can transform a sluggish region into a booming economy. Problem is, these hot markets often ignite across state lines. In such cases, you may rush to commit valuable time and resources to preparing a bid. Among the many small details that […]
Using your financial statements to recalibrate your estimates
Offering a fair price for quality workmanship lies at the heart of every contractor’s long-term success. Finding this critical balance begins with the estimating process. Over time, however, even the most sound approach to estimating can slip a little bit and require recalibration. The good news is that the tools for the job lie right […]
PATH Act bonuses for smaller construction companies
If yours is a smaller construction company, you may think you’re even further behind the eight ball when it comes to claiming the research tax credit. After all, large businesses can presumably allocate staff and resources to innovation more readily. But smaller construction businesses should still give it a try — and the Protecting Americans […]
How contractors may claim the research tax credit
The research credit (often called the “research and development” or “R&D” credit) incentivizes businesses to step up their investments in research. Although calculating the break isn’t exactly easy, the end result can be well worth the effort. Generalities and specifics To be eligible for the research credit, an innovation-seeking business activity generally must: Relate to […]
The challenge of quantifying lost productivity damages
Stick around the construction business long enough and it will happen to you. Maybe it already has. We’re referring to the unfortunate circumstance of, through no fault of your own, a project getting severely disrupted. In such cases, you might eventually need to file a claim in court against the owner for lost productivity damages. […]
Beyond theft: The human side of jobsite security
When the topic of security on a construction site comes up, the discussion usually revolves around one word: theft. How do we keep people from stealing stuff? But there’s another aspect of jobsite security that tends to get relatively little attention: the human side. All too often, construction company owners don’t recognize these risks until […]
Play to win: Profitability tips for today’s construction companies
In the construction business, like most others, the focus is on “being competitive.” But what does this really mean? For many contractors, it means staying in the game — turning a profit when you can but at the very least breaking even. This is particularly the case when jobs are scarce or perhaps you run […]