A SURGICAL APPROACH: Sharpen Your Project Accounting with Activity-Based Costing

Activity-based costing is an accounting methodology that identifies activities and assigns a cost to each one based on resources consumed. It’s often associated with manufacturing but can be applied to construction as well. Many contractors are pleasantly surprised by the results of activity-based costing in comparison with more traditional job-costing methods, which typically rely on […]

4 Ways AI Is Impacting the Construction Industry

Thanks in part to the Internet (of Things) and cloud computing, artificial intelligence (AI) has transitioned from science fiction to everyday life. The impact of AI is already felt throughout our daily lives — from automated spam email detection to viewing suggestions on our favorite streaming service to smart speakers that put voice commands into […]

Walk the Talk: Prioritizing Company Core Values

Do your employees know your construction company’s core values? Are they (and you) applying these values to daily operations and decision making? Are you using the values to build your brand and reputation in the marketplace? If you had a hard time answering the above questions, it may be time to revisit the concept of […]

Viewing Your Lender as a Business Partner

It’s easy to get intimidated when applying for a business loan. You have the need; the bank has the money — how can you win them over? One way to lower the stress level is to view your lender as a partner rather than a gatekeeper. After all, it needs your business just as much […]

A SYMBIOTIC BOND – How WIP reports relate to your financial statements

Construction work in progress (WIP) reports are too often ignored and less often fully understood. Your WIP reports share a symbiotic bond with your financial statements — the two should be consistent in the information they present. Let’s look at four different schedules of a typical WIP report and discuss how they relate to your […]

Is Risk Management Software A Worthy Investment?

“My construction company recently underwent an audit by the Occupational Safety and Health Administration (OSHA). Among the most important findings is that our safety and insurance documentation is inadequately organized. While researching the matter, I learned that there’s software available to help businesses with this problem. But is it a worthy investment, or would I […]

Evaluate the Risks of Joint Ventures Carefully

Sometimes a construction project is just too big or complex for one general contractor to handle alone. Joint ventures (JVs) enable two construction companies to temporarily partner up to distribute risk, apportion resources and, one hopes, share profits. There are other reasons to consider a JV. You might need to secure additional bonding capacity or […]

Construction Innovators Can Still Claim the Research Tax Credit

There are innovators in every industry, including construction. If your company happens to be one, you may be able to claim the research tax credit, which remains available under the Tax Cuts and Jobs Act. Explore eligibility To be eligible, an innovation-seeking business activity generally must do several things. First, it must relate to development […]

How to make workers’ comp costs less costly

Employers usually have no choice: You’re required to pay workers’ compensation insurance for W-2 employees. But no one says you can’t look for ways to reduce the cost of coverage. The key is to lower your company’s risk. To that end: Commit to safety. Communicate and enforce safe work rules and establish a task force […]