Business DevelopmentMore 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 »

BookkeepingMore Like This

Equifax, one of the three largest consumer credit reporting and financial services providers in the nation, announced its data was breached on Sept. 7. The personal information of an estimated 143 million U.S. consumers (44 percent of the population) was stolen from May 13 to July 30. This includes full names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers.

Continue »

AutomationMore Like This

Distributors in building and construction supplies are well aware of the benefits automation can deliver. When it comes to the physical supply chain in particular, automation leads to improved fulfillment management, optimized processes and increased profits. However, the impact automation can have on the financial supply chain is often overlooked.

Continue »

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 »

AccountingMore Like This

There was a time when non-recourse financing for commercial real estate projects protected borrowers against personal liability for a loan gone bad. Lenders would look solely to the underlying assets of the project to recover losses when a loan defaulted. However, as times have changed, so too have these protections.

Continue »

FinanceMore Like This

Construction input prices collectively rose by 1 percent on a monthly basis and 3.8 percent on a year-over-year basis, according to analysis of U.S. Bureau of Labor Statistics data released today by Associated Builders and Contractors. This represents the fastest year-over-year rate of materials price inflation since the beginning of 2012. Nonresidential input prices rose 0.9 percent for the month and are up 4 percent year over year.

Continue »

FinanceMore Like This

In today’s construction landscape, contractors won’t run out of work; but if their accounting strategies aren’t up to par, they will run out of money. The good news is: this is an avoidable issue. The bad news is: many contractors aren’t properly managing cash flow, and with time (approximately five to 10 years), 70 percent of small- to medium-size contractors will be closing their doors.

Continue »