Agreements are made every single day. It may be tempting to use a letter or even a handshake agreement when performing construction work on a small project. However, the harsh reality is oral agreements are difficult to prove in court and letter agreements often lack essential terms to deal with nuanced issues such as insurance, dispute resolution and contract termination.
Typically, disruption in the workplace is counterintuitive to productivity. But in terms of creating innovative ways to manage people, processes and technology, the concept of “disruption” isn’t such a bad thing for the construction industry. Change is stirring whether contractors are ready for it or not, and firms that have adopted new ways of managing scheduling and workflows are seeing stellar results—earning the accolades of repeat projects for key clients, as well as happy project partners.
Protecting projects from corrosion is a key component to many construction projects. In this three-part series, learn how to prevent three major types of corrosion: crevice, galvanic and pitting corrosion. Up first, understanding and avoiding pitting corrosion.
The explosion of e-discovery in litigation and arbitration unpleasantly introduced many companies to the concept of spoliation of evidence and the need to preserve documents once litigation is pending or even reasonably anticipated. At first, the “adverse inference instruction” penalty (i.e., a judge informs the jury that someone concealed evidence or information, or spoiled evidence so it could not be brought to court) did not seem too severe. The greater concern was for dismissal of claims or defenses, a sanction thought to be so severe that no judge would order it except in the most egregious of circumstances.
In every industry, technological advancements are helping companies to be more efficient and save money. Construction is no exception. According to the 2016 report on the results of a global PwC survey, Industry 4.0: Building the Digital Enterprise, respondents anticipate a return on their investment in technology over the next five years. Participants in all industry sectors expect to realize a 2.9 percent increase per annum in revenue. Engineering and construction companies anticipate a revenue gain of 2.7 percent per annum. On average, companies across all sectors expect to reduce costs by 3.6 percent annually.
A successful contractor does everything possible to run a lean, financially sound company. Finding ways to save money while increasing margins, improving cash flow and operating more efficiently is key. Following are 12 financial strategies contractors can implement to stay financially healthy.
As the economy remains solid and businesses generally are doing well, most construction contractors have likely thought about ways to continue growing their companies. By investing in a minority stake in a business, strategic equity partners can provide capital for growth or shareholder liquidity and help take the business to the next level.
Contractors drive an average of 75 miles every day, according to a recent study by The Aberdeen Group. Those miles equate to more than $10,000 in tax write-offs each year However, the vast majority of miles go unreported and dollars are never claimed due to lack of awareness or failure to use tracking technology.
Maintenance is a key priority when it comes to fleet operations. Of course, preserving the bottom line through cost-efficient decisions should always a priority, but reliability, performance and safety are of equal importance. A vital part of fleet maintenance, which takes into account all these factors, is an effective oil analysis program.
Gone are the days of filing cabinets lining the walls for a single construction project. With the digitization of documents and use of multiple computer programs, the manual process has been simplified to hard drives—and maybe a few files for record keeping.
To have long-term success in the construction business, a company needs to ride the ups and the downs and navigate the surprises that present themselves on an all-too-regular basis. The business cycle can be “feast or famine,” and neither is good. So how does one stay financially prepared for every bump in the road? Continue »
Construction input prices remained unchanged in May, ending five consecutive months of price expansion, according to analysis of Bureau of Labor Statistics data released by Associated Builders and Contractors (ABC). Construction input prices expanded 3.4 percent on a year-over-year basis.
Prevailing business wisdom holds that the way to reduce credit risk is to limit credit lines, be stingy in allowing credit and freeze orders on past due accounts. This line of thought posits that it is generally impossible to lower “bad debt” losses without adverse consequences to sales and business expansion.