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In May 2014, the long-awaited revenue recognition standard was issued with the intent of creating consistent revenue reporting across all businesses in varying industries throughout the world. The implementation of the accounting standard means the construction industry-specific guidance currently used in the United States will no longer be applicable, and will require different approaches for recognizing revenue as well as additional disclosures.

The design/build delivery model offers owners and contractors the potential for greater efficiencies in the construction process, but if the parties do not carefully manage the design review process, the project can experience unnecessary delays to procurement and construction that can cascade throughout the project. It is a complex process to track all of the hundreds or thousands of different engineering drawings submitted on a large project to ensure that they are being reviewed and approved according to the contract schedule. The process is further complicated because the owner’s engineers and the contractor’s engineers (and sometimes third-party reviewers) may have conflicting engineering judgments on complex technical issues.  

As the construction industry begins the slow crawl out of the recession, many companies and contractors are increasing the number of bids they submit for residential projects. In fact, the competition is as fierce as it has ever been. Obviously, everyone wants to present the winning bid, so what can owners do to increase their bid-to-business-award ratios? 

With the construction industry having been in a depressed state for so long, contractors are looking for ways to survive. Prevailing wage jobs may just be the key to survival until work in the private sector bounces back. Speaking with contractors who have always performed prevailing wage jobs, they all have the same complaint: Increasingly, contractors with little or no prior experience in a prevailing wage environment are starting to bid prevailing wage projects. 

In years past, contractors would typically see four or five competitors bidding on a prevailing wage job. That isn’t the case today. It’s not uncommon to have 20 or more contractors bidding on one prevailing wage project. With so many contractors fighting to win a bid, profit margins are significantly reduced, thus requiring contractors to bid on more projects. In many cases, contractors have to bid prevailing wage jobs where they have no prior track record. This can create a world of problems for the contractor who doesn’t understand prevailing wage dollars, compliance issues and regulations.

With the construction industry having been in a depressed state for so long, contractors are looking for ways to survive. Prevailing wage jobs may just be the key to survival until work in the private sector bounces back. Speaking with contractors who have always performed prevailing wage jobs, they all have the same complaint: Increasingly, contractors with little or no prior experience in a prevailing wage environment are starting to bid prevailing wage projects. 

In years past, contractors would typically see four or five competitors bidding on a prevailing wage job. That isn’t the case today. It’s not uncommon to have 20 or more contractors bidding on one prevailing wage project. With so many contractors fighting to win a bid, profit margins are significantly reduced, thus requiring contractors to bid on more projects. In many cases, contractors have to bid prevailing wage jobs where they have no prior track record. This can create a world of problems for the contractor who doesn’t understand prevailing wage dollars, compliance issues and regulations.

It is common knowledge that the construction industry has been one of the hardest hit sectors by the global financial crisis over the last five years. However, there are promising signs of recovery and even rapid growth among select construction disciplines in certain geographic locations. Specifically, the U.S. has seen a large uptick in residential construction in the past year. With this increase come new players wanting to supplement their stagnant commercial divisions. In order to avoid almost certain pitfalls, these new players must be conscious and cautious of the differences between residential and commercial construction. For example, firms new to the game must be cognizant of building codes, potential LEED requirements, local regulations, audits, and potential incentives in order to maximize their return and avoid devastating mistakes.

In business, there are two key strategies for generating more profit: increasing revenue levels and reducing expenditures. When owners or executives only focus on the top line, they miss out on the benefits brought about by cost reduction and performance enhancing measures. While everyone dreads workforce layoffs, there are several less drastic but more effective strategies for improving the company’s performance and enhancing business efficiency. 

Many professionals in the construction industry deal with electrical issues pertaining to interior and exterior lighting. According to the Bureau of Labor Statistics, there were 160,560 electrical engineers employed in 2012. Many of those engineers and others are using outdated, energy-hungry technologies like fluorescent tubes instead of new, LED lighting that is safer, gives off better light without heat and provides lower maintenance costs and sustainability.

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