If only strategic planning was as simple as it sounds. Leaders in the construction industry benefit from the action of strategic planning in addition to a mindset of strategic planning. Together, these components set the stage for sustainable organizational health. A strategic plan cannot happen in a vacuum; rather, it’s an integral part of a construction company that understands the need for driven growth.
The demand for sustainability and efficiency associated with new construction and renovation projects is higher than ever, as monthly energy costs constitute an ever-increasing percentage of total building life cycle expenses due to rising utility rates. As a result, sustainable construction practices promoting net-zero building designs have become a prevalent industry objective. However, peak sustainability is rarely accomplished due to the high costs and a lack of resources available in the early stages of design and planning.
In recent years, the EB-5 visa immigrant investor program has been used as an alternative source of funding for many large infrastructure projects, hotels, real estate development, nursing and assisted living facilities and hospitals. EB-5 investors have typically preferred real estate-related projects.
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.
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.
Five Tips to Keep Business Running After a Natural Disaster Construction Contractors Affected by the Recent Hurricanes Can Take Steps to Minimize Operational Downtime
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.
Construction contractors can keep their businesses running efficiently and profitably by focusing on excelling in a few key areas. By making sure business aspects such as fleet management, safety, estimating and supply chain management are running smoothly, contractors can increase profits and improve business operations.
The construction segment is at the rocky bottom of all segments worldwide for access to working capital and length of accounts receivable, according to Pricewaterhouse Coopers’ Annual Global Working Capital Survey. However, industry stakeholders seem to report making money. How do they do it? They must be holding money for longer periods of time.
For federal contractors, the Trump administration brings unique opportunities and challenges, as contractors hold the president accountable to his campaign promises to rebuild roads, bridges, airports and schools during the next three years.
The consensus that our nation’s aging infrastructure is in serious need of repair and the need to rebuild is broadly accepted by legislators, business leaders and the American public.
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.
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.