Category: Contractors/sub-contractors

In a perfect world, initial project estimates would match actual costs at the end of every job — with no hint of cost overruns or profit fade. But, let’s be honest, that hardly ever happens. Fortunately, there are ways contractors can tighten up estimates so they’re as close as possible to final job costs. Here are 10 to consider. Leverage Software and Digital Tools Be sure you’re using carefully chosen, up-to-date and construction-specific accounting software and digital tools to ensure… Read more ›

Creating a comprehensive and actionable succession plan is rarely easy for business owners. It’s certainly a challenge for most contractors, who may find it difficult to step away from the day-to-day hustle and bustle of building to envision life without a hardhat. If all this sounds familiar, know that there are ways to go about succession planning in a slow, methodical manner that can make it relatively easier. In fact, it may strengthen the plan you eventually devise. Lay Down a… Read more ›

For construction businesses, financial management is notoriously complex. Contractors have to deal with the ebbs and flows of their respective markets, project-based pricing and collections, rising operating costs and various other factors — not the least of which is bad weather! Yet effective financial management is essential for a company to thrive. Here are some ways an owner can better manage their money. Follow Strong Billing Procedures Healthy cash flow — one of the most important aspects of financial management… Read more ›

Real estate development projects shape the urban landscape, providing housing, commercial spaces and infrastructure for the community. These projects involve substantial investments and require intricate financial arrangements and regulatory compliance to complete. Stakeholders rely on detailed financial reporting to assess the health and performance of their projects. Given the high stakes and ever changing flow of business in the real estate industry, financial reporting is a necessity. But what does financial reporting look like for a real estate venture? Project… Read more ›

On March 1, 2024, the U.S. District Court for the Northern District of Alabama ruled that the Corporate Transparency Act (CTA) was unconstitutional. In response to this ruling, the Financial Crimes Enforcement Network (FinCEN) has indicated that it will comply with the ruling for as long as it remains in effect, and that this ruling only applies to the plaintiffs in the case.  Since this ruling is limited to the plaintiffs in the case, other reporting companies should continue to comply… Read more ›

The U.S. Department of Labor’s (DOL’s) test for determining whether a worker should be classified as an independent contractor or an employee for purposes of the federal Fair Labor Standards Act (FLSA) has been revised several times over the past decade. Now, the DOL is implementing a new final rule rescinding the employer-friendly test that was developed under the Trump administration. The new, more employee-friendly rule takes effect March 11, 2024. Role of the New Final Rule Even though the DOL’s final… Read more ›

Cost overruns have continuously presented a burden on earning profit for construction companies. They lead to delays, heavy financial strain and sometimes even project failures. Cost overruns coupled with pressing economic challenges the construction industry’s shrinking profit margins are making it harder to stay in business. There may still be something businesses can do to save themselves from this trouble. Cost reporting and audits are two fantastic methods of effectively managing overruns and preventing future financial threats. The role of… Read more ›

At some time or another, construction company owners must hang up their hard hats. But what will happen to your business when you retire or move on to the next professional opportunity? And what if you suddenly can’t work for an extended period, because of illness or injury? Having a succession plan in place is key to ensuring business continuity. Even if you’re nowhere near retirement, it’s a good idea to start work on a succession plan early. The best ones… Read more ›

Section 263A is an often misunderstood and misapplied part of the Internal Revenue Code. And it’s one that many construction businesses — particularly homebuilders — should get a handle on to avoid unexpected tax issues and unwanted attention from the IRS. Let’s review the basics. UNICAP Rules Sec. 263A, also referred to as uniform capitalization or UNICAP, requires eligible businesses to capitalize — rather than currently deduct — certain direct and indirect costs related to producing, acquiring, improving and holding property… Read more ›

In a perfect world, initial project estimates would match actual costs at the end of every job — with no hint of cost overruns or profit fade. But, let’s be honest, that hardly ever happens. Fortunately, there are ways contractors can tighten up estimates so they’re as close as possible to final job costs. Here are 10 to consider: 1. Leverage software and digital tools.  Be sure you’re using carefully chosen, up-to-date and construction-specific accounting software and digital tools to ensure accuracy and… Read more ›