Winning a prestigious contract, developing a faster process to complete a critical task, or inventing an attachment for a machine that dramatically increases productivity are the home runs of the construction world. These game-changing events are the result of creativity, effort and investment.

No matter how long you have been in the construction business, you know you don’t win every contract you compete for, and not every job earns the margin estimated. Other business challenges include faster processes being quickly adopted by your competition, and inventions not working work as envisioned. How will your company sustain its growth and profitability in the post-recession economy? How will you differentiate yourself from the competition?

Companies thrive on innovation. Whether it's in the form of new products or techniques or improvements to existing products or techniques, many companies rely on intellectual property (IP) rights to protect their innovations. There are many forms of IP, including patents, trademarks, copyrights, trade dress and trade secrets. Of these, patent rights have proven themselves to be particularly valuable to innovative companies.

Small and mid-sized construction firms looking to replace aging equipment or buy new equipment to help them grow are in line to get a significant boost from a financing environment likely to continue to improve throughout 2013. This time last year, many lenders were still working through the fallout caused by the bursting of the credit bubble, the economy was barely growing, and loans were more difficult to obtain as a result.

In the past decade, the popularity of “green” building has grown exponentially. But while sustainable building methods and materials continue to develop rapidly, many of the design and construction contracts surrounding green projects have not kept pace. Many contracts fail to address the unique and complex legal risks that accompany green building projects, especially those that aim to achieve third-party certification through LEED or a similar program.

The construction industry is quickly enhancing the science of construction project estimating – a concept as old as the ancient Egyptian pyramids – through new technology. These new tools have been instrumental in helping realize cost savings of time and money for the owner and developers as they bring projects to market.

According to a 1994 study conducted by the National Institute of Standards and Technology (NIST), the U.S. capital facilities industry was losing an estimated $15.8 billion per year in efficiency losses because of inadequate interoperability among computer-aided design, estimating, facility management and other siloed processes and systems. Since that time, advancements in focused development and technology have reduced losses, especially in the area of cost estimation.

The notion of fortuity is a central underpinning of insurance. Intuitively, we understand that it would be difficult to purchase insurance for an accident that has already happened, and even if such insurance were somehow to be made available, that by definition it would be impossible to price it. Whether faulty workmanship that results in construction defects can be considered an “occurrence” under a comprehensive general liability (CGL) policy strikes at the essence of insurance. If insurance is intended to protect insureds against losses from accidents, then an insured contractor who is sued for unintended damage because of accidental faulty workmanship should arguably be covered for such loss. But can damage from faulty workmanship ever be considered accidental if the work provided by the contractor was completed as intended and loss flowing from poor workmanship inevitable? This question continues to fuel litigation over whether and to what extent insurance should cover construction defects. A divergence of opinion has also led at least four states – Arkansas, Colorado, Hawaii and South Carolina – to enact legislation on the point.

Construction companies are helping to rebuild the global economy. While the west views the renewal of its ongoing infrastructure as a catalyst for recovery – witness the infrastructure spending at the core of The American Recovery and Reinvestment Act, designed to re-start the economy – the east views infrastructure construction as a key tool for growth.

Certainly, infrastructure can be a key factor in determining a country or region’s economic competitiveness. Construction companies are, of course, a vital element to the core infrastructure that shapes and defines urban landscapes – metro lines, skyscrapers, stadiums, universities, airports and other physical geology – and, as a result, contribute directly to the growth of a city. Having this infrastructure gives developed markets an advantage in terms of their physical assets and is, in part, the reason they are deemed ‘developed’.

For construction contractors who spend a great deal of time in the field, having access to important documents and software programs on demand from any location can help them run their businesses just as easily as if they were in the office every day. That’s why many contractors are making the move to “the cloud,” which means storing all data and software in a third-party location so that it can be accessed via the Internet rather than storing the information on servers at company facilities.

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