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Accounting

Accounting insights for construction firms—job costing, financial reporting, cash flow and bookkeeping strategies to keep contractors profitable.

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    Examining Your Financials: Ask the Experts

    Industry leaders provide advice about planning for smart growth, obtaining adequate bonding, protecting your balance sheet and more.
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    Don’t Leave Money on the Table

    The underutilized 179D tax deduction can benefit your design-build projects.
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    Drafting Effective Cost Estimates

    Naturally, cost is one of the primary measures of a project’s success. From the outset, project and construction cost estimating is critical to ensure that the anticipated project and construction costs meet budget expectations. Cost management throughout the design phase helps to avoid cost overruns and maximize potential returns on investment. The cost estimate should provide the construction team with the information necessary to accomplish the following:
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    Health Care Reform

    Breaking down the financial impact of providing a group health care plan for your employees
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    Negotiating Favorable Contracts

    Hammering out the details before breaking ground on commercial construction jobs can prevent headaches for general contractors. Here are some tips for doing so: Own the schedule In any complex job, someone’s going to be late with something, and profits erode every hour that workers, equipment and materials sit idle. It’s imperative that general contractors negotiate for sole and explicit contractual authority to adjust the building schedule. Define payment terms In commercial construction contracts, the most common payment provisions are “pay if paid” and “pay when paid.” The former absolves general contractors of subcontractor payment obligations until owners cut them a check. The latter simply specifies the time of payment and does not transfer risk to the subcontractor. Subcontractors naturally prefer pay-when-paid provisions because they’re…
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    Keep Workers’ Comp Costs Low

    Follow these best practices to offset rising workers’ comp costs: Reporting of Incidents and Accidents Timely reporting of accidents is critical in starting the appropriate investigation on a given claim. Claims have a tendency to get worse as time passes, and much of the information on the claim can get lost or confused. Start early, and keep the review process going until the claim is closed. Medical fraud When workers are sent to the clinic following an injury, it is important to have them accompanied by someone who is aware of the red flags that can send a claim into the danger zone. Having a superintendent who understands the process can allow companies to assess the claim higher up the chain quickly when it is…
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    Pinched by the Credit Squeeze?

    Online receivables auctions can free up cash without the restrictions of a bank loan.
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    Financial Ratios

    Common ratios for benchmarking against industry standards
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    Begin Your Year-End Planning Now

    An early start allows time to take proactive steps and better position your company for tax time.
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