By: Jeff Burd Winter’s gloom continues to settle in on the non-residential construction market nationally. Bank lending for commercial construction remains restricted, secondary financing vehicles, like REIT’s or commercial mortgage backed securities, remain closed. Compounding the financial issues, widespread downsizing has elevated unemployment to levels not seen since the early 1980’s, further suppressing demand. “We’re…
More IRS Audits A recent report from the Government Accountability Office reveals that for its 2008 fiscal year, the IRS increased its audits of high-income taxpayers by close to 16%. Audits of small businesses increased by 3%. Less Information Required on Davis-Bacon Payroll Records Contractors covered by the Davis-Bacon and Related Acts will no longer…
Congress and the administration have put into place a comprehensive economic stimulus plan in an attempt to revitalize the economy. Several spending provisions of the American Recovery and Reinvestment Act of 2009 (the Act) will have a direct impact on many sectors of the construction industry. The Act also contains a number of tax-related provisions…
The Environmental Protection Agency (EPA) has proposed tighter controls on storm-water discharges on construction sites. If adopted, these proposed standards may end up costing the construction industry in excess of $2 billion annually to monitor and chemically treat and filter storm-water runoff from construction sites, according to an industry group. The Problem The EPA says…
If you provide a 401(k) or other defined contribution retirement plan for your employees, you are probably now dealing with a variety of unanticipated issues as a result of the downturn in the economy. Can you, for example, still afford to match some or all of your employees’ plan contributions? Does offering a benefit like…
Contractors can take a variety of steps to minimize cost overruns, keep a project on schedule, and reduce the potential for litigation. One of the most effective is to keep detailed and timely records that cover every aspect of a project from start to finish. Here is an overview of the most important records you…
The economic downturn has only heightened the need for contractors to look for ways to save money and increase revenues. A top-to-bottom review of your operations may reveal some surprising areas where significant savings can be found. Manage Equipment Use More Efficiently Fuel is probably a major expense for you, especially if you are involved…
Long-term contracts can be lucrative for contractors, but sureties can be nervous about the many risks associated with such commitments. Contractors can take a variety of steps to protect their businesses and reassure sureties when assuming the risks of long-term contracts. Subcontractor or Supplier Default What happens to your firm and to the project if…
Many contractors recognize that they need to spend time thinking about the big picture—the growth, direction, and management of their companies. Unfortunately, they are either too caught up in the day-to-day work of running their businesses or too uncertain about their strategic planning skills to give important issues the attention they deserve. If you find…
In competing for jobs, many contractors tend to underestimate and undersell their firm’s strengths. It’s not difficult to understand why: Selling doesn’t come naturally to most contractors. Sales skills tend to be regarded as “soft” skills and viewed as much less important than craft or estimating skills. The reality, however, is that contractors need to…
