There are four keys to get your firm’s finances in order.
By Michael Burdick
While there are countless ways for a business to fail, many of the most common causes stem from poor financial management. Construction firms are no exception. Underscoring these hardships, Bloomberg BNA’s 2014 survey of 200 in-house tax and accounting professionals found that construction and manufacturing firms are the most likely to experience procedural accounting and tax errors.
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2018 will be a year of digital disruption in construction.
By Chad Hollingsworth
There’s no denying construction’s impact on the U.S. economy. According to McKinsey Global Institute’s 2015 Industry Digitization Index, construction accounts for three percent of GDP share and five percent of employment share, yet it suffers negative productivity growth. This is due in large part to its status as the second least digitized U.S. industry. Unsurprisingly, industries with the highest rates of digitization experience the greatest productivity growth, and unlike advanced manufacturing or utilities, for example, construction has been slow to adopt the digital tools that have automated processes and unlocked efficiency in other industries.
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There are four elements of effective safety programs.
By Bill Wilhelm
On any construction site, improving worker safety should be a primary objective. Effective safety planning and implementation not only keeps workers safe, but also can shorten project timelines, improve productivity and boost morale. Consider these four elements when developing or updating a safety program for your company:
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Great projects rarely start with a lie.
By Michael Boren
Time and time again, companies start their relationships with new clients by lying, or at least that is how it can feel. Once that first meeting is over and a company is selected for the job, the real work starts and the wizard behind the curtain is revealed. Too often, project owners realize that all of that sexy tech talk and those amazing videos that won them over were a flashy diversion from reality.
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The new federal tax law offers pluses and minuses for construction.
By Elizabeth Boone
The changes brought about by the 2017 federal tax act are likely to be recorded on both sides of the construction industry’s ledger. On the positive side is the decrease in effective tax rates for both corporations and individual owners of partnerships and other types of so-called pass-through entities. The construction industry is sure to also welcome increased bonus depreciation and expensing as well as a higher historic rehabilitation tax credit.
Negatives in the tax act include limits on the deductibility of business interest expense — a sore point for businesses that rely on loans to finance their projects. Construction firms operating as a sole proprietorship or a pass-through entity such as a partnership will be limited in their ability to deduct excess business losses. The reduced mortgage interest deduction could dampen profits for residential construction firms with customers located in affluent areas.
Construction firms typically purchase machinery and equipment, which can generally be depreciated or expensed. Enhanced provisions in this area will likely help reduce tax bills for the construction industry.
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By Zachary S. Davis
Every so often, a new technology changes the course of an industry. For the construction industry, the development of autonomous driving technology and its implementation in construction vehicles and equipment might be such a moment.
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By Jeremy P. Brummond
Most contractors have in place commercial general liability (CGL) insurance policies to protect themselves against liability arising out of their work on a construction project. These policies clearly cover certain damage claims – for example, assume a contractor is working on a remodel project for office space. While moving materials, someone loses control of a cart and the cart runs into a woman who was walking in the hallway. The contractor’s CGL policy would generally cover a damage claim such as a claim by the woman to recoup her medical expenses. Similarly, if the cart ran into existing office equipment (not being provided by the contractor), the CGL policy would also cover that property damage.
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By Lisa Brown
Resiliency is often a priority for municipalities, but the topic has been especially crucial for local government leaders given recent natural disasters. The best methods used to protect one city aren’t necessarily the best approaches for another city. For example, municipalities that face severe hurricanes may need to implement different connected solutions than a city that faces drought conditions. Being prepared for the unexpected not only helps cities protect their investment, but also its residents and visitors.
A smart city infrastructure can help cities achieve resiliency in addition to keeping its occupants more comfortable and safe. When planning, city leaders should identify their challenges and goals to determine which intelligent infrastructure or solutions to integrate.
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