Although the general economy shows signs of a slow recovery, construction spending remains below November 2006 levels. When the construction playing field changed drastically as a result of the 2008 financial crisis, contractors found themselves spending more money chasing projects with significantly more competition and lower profit margins. Many were not financially or operationally prepared for this shift. Some did not survive, but many did through careful planning, confident leadership and solid decision-making. A key to survival was a close partnership between contractors and their critical advisors, including accountants, banks, insurance agents and sureties.
Tim Hughes, Attorney – Bean, Kinney & Korman, PC, Arlington, Va.
What are the benefits of having a succession plan?
Failing to plan is planning to fail. That applies not just to establishing a business plan and implementing it over time, but also to providing for the sustainability of that business over time. We all face threats to our businesses, whether from the economy or life events, including death, disability and people at the top of the company moving on. Unless you think through the ramifications of these possibilities, you’re putting your business in a very precarious position. Every company needs to think about the long-term growth trajectory to develop leadership that will keep the ball moving down the field when current leadership moves on to other things. Smaller companies that rely on their founder will face a real challenge when that person is gone if they don’t prepare for it. Companies with a bigger, more established national presence that are much more corporate and have more stock ownership especially need strategic planning to develop future leadership. Continue »
Oddly enough, some of the most positive news emerging from the nonresidential construction industry involves one of the sectors that caused many local economies serious heartache in the not so distant past: multifamily construction. Continue »
At a construction site in suburban Houston, after all the workers have gone home, a pickup truck pulls up to the poorly lit back entrance. Someone enters the site through an unlocked gate, returns to the truck with a small load of wallboard and drives off. The next day, he’ll be back—to go to work. Continue »
The old adage “a good beginning makes a good end” proves true in the construction process. The goal of any scope of work is to create a detailed account of the tasks, procedures and specifications for each construction process. A good beginning—clear communication between all parties involved and accuracy in the detailed scope of work and price proposal—will lead to a good end product. One way to begin on the right foot is by using job order contracting (JOC), an indefinite delivery/indefinite quantity procurement method that enables facility owners to complete a large number of repair, renovation and minor construction projects with a single, competitively bid contract. Continue »
Construction projects require collaboration among many parties to ensure the work is completed. When one of those parties files for bankruptcy, finishing the project can be very difficult. Continue »