Managing Your BusinessMore Like This

Sureties and banks, as well as rating agencies and governmental customers, analyze a contractor’s financial strength using different metrics and methods. Liquidity (the ability to meet obligations as they arise) is generally prized as the greatest strength, with leverage and profitability close behind. For bonding purposes, the contractor must understand the surety’s unique approach to liquidity analysis, with the goal being to steer the bonding company—rather than being steered by it.

Continue »

Business DevelopmentMore Like This

Building a solid foundation for a good relationship with sureties is important to every contractor. Just as with any relationship, it must be built on trust, mutual respect and honest communication. Sureties want to work with contractors that are accountable and proactive. They also expect contractors to have good management skills so that a profit is realized on the majority of their projects.

Continue »

Business DevelopmentMore Like This

Coverage of the devastation caused by Hurricanes Harvey, Irma and Maria over the past few weeks has been almost inescapable. While large-scale recovery efforts are well under way, individual companies located or doing business in areas affected by the storms likely will be feeling the effects for much longer, with many facing the very real prospect of having to shutter their operations for good.

Continue »

EnvironmentMore Like This

Over the past decade, wildfires have grown in size, duration and destructiveness due to the boom in biomass fuel production, changing climate conditions, rising temperatures, widespread drought and earlier snowmelt. Human error also has caused growth in the number of wildfires in recent years. From 2014 to 2017, the frequency of fires in the United States has been increasing at an estimated annualized rate of 5 percent burning more than 13.7 million acres, according to the National Interagency Fire Center.

Continue »

BiddingMore Like This

Acquiring new business in the construction industry is accomplished in many ways, especially in a strong economic development cycle. General contractors, construction managers and subcontractors should know their risk control limits and be efficient and confident in the pursuit of new business. The work acquisition process in construction has as many inherent risks—as does work execution. Following are two of the most common ways to gain new projects.

Continue »

Project CollaborationMore Like This

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.

Continue »

Managing Your BusinessMore Like This

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.

Continue »