Construction Industry Advisor
Showing 177–192 of 262 results
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Contractor’s Toolbox – How JPM helps measure productivity in real time
Fall 2012
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 411
Abstract: Traditional measures of productivity are after-the-fact accounting measures of production. They do nothing to help contractors monitor productivity during a job and respond to negative trends or other issues. So, increasingly, contractors are turning to Job Productivity Measurement (JPM). This article shows how JPM measures productivity in real time by tracking work performed compared to construction put in place. It determines the quality of construction outcomes, rather than simply outputs that can mask unproductive activities.
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Ready to jump into new waters? – Look into all of the details of an out-of-state job
Fall 2012
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 657
Abstract: It could be a good idea for a contractor to seek work outside of its home state — but, before jumping into those new waters, it’s essential that it look into all of the details. This article discusses issues that may arise in regard to taxes, insurance, licensing, bonding, labor relations and contract language.
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The agree-to-agree clause: Handle with care
Fall 2012
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 643
Abstract: What happens if a contract’s change provision is nothing more than an “agree-to-agree” clause? That is, what if the contract requires parties to negotiate the price of additional work in good faith, but is silent as to what happens if they can’t reach an agreement through negotiation? This article examines one case in which an architecture firm terminated its contracts with a county without having agreed with its subcontractor on adjusted fees. The subcontractor sued to obtain a judicial determination of its claims. It prevailed, but only after a long, expensive trial and appeal. Ted Jacob Engineering Group, Inc. v. The Ratcliff Architects, 187 Cal. App. 4th 945 (2010)
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Boning up on the new repair regs – IRS guidance can help you and your clients reduce taxes
Fall 2012
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 849
Abstract: In December 2011, the IRS issued temporary guidelines addressing the tax treatment of expenditures made to acquire, produce or improve tangible property. Contractors should familiarize themselves with these regulations because: 1) they affect the tax treatment of investments in their own buildings, and 2) they may provide opportunities to help clients reduce their tax bills. This article offers advice on how to determine whether an expense should be capitalized or deducted; a sidebar offers a specific example.
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Contractor’s Toolbox – Read the fine print in insurance policies
Summer 2012
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 431
Abstract: It’s common for an owner to require the general contractor to name the owner as an “additional insured” under the general contractor’s commercial general liability (CGL) policy. Likewise, a general contractor typically requires subcontractors to name it as an additional insured under their CGL policies. But contractors who haven’t read the fine print of the insurance policy might not know that they may or may not be covered as an additional insured to the extent they expect. This article explains what they should look for.
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Going public – Understand prevailing wage laws before you bid on public works projects
Summer 2012
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 599
Abstract: As the economy continues to struggle, many contractors are adding public works projects to their repertoires just to stay profitable. Public projects can be a lucrative source of new work, but they’re also subject to complex federal and state requirements fraught with traps for the uninitiated. Prevailing wage laws are among the most treacherous. This article discusses how “prevailing wages” are determined, the record-keeping that’s necessary, and the penalties for noncompliance.
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Build a future for your heirs … and your business
Summer 2012
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 780
Abstract: Baby boomers marching toward retirement need to develop a plan to transition themselves out of their leadership role in their construction company. The succession plan should cover everything from naming a successor to choosing the right method for shifting ownership to that successor and perhaps other family members. This article discusses involving advisors and the entire family in such decisions as choosing the successor, dividing assets equitably among heirs who are and are not involved in the business, and how to manage the transfer process.
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Retainage payable: A simple change can defer taxes
Summer 2012
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 803
Abstract: Contractors who withhold retainages from subcontractors may be able to defer some of their taxable income to future years. This opportunity stems from the way retainage payable is treated under the percentage-of-completion method (PCM) of accounting. As this article explains, large contractors generally use the PCM to report income on long-term contracts, using a “completion factor” formula to calculate taxable profits for the year. But, in certain circumstances, retainage can be excluded from this factor. A sidebar offers an example of how this works.
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Contractor’s toolbox – 5 tips for avoiding tax audit triggers
Winter 2008
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 471
Abstract: Paying income taxes is painful enough without the specter of penalties and interest. But that’s just what you’ll incur if an IRS audit reveals you broke the rules. This article offers five tips (such as reporting all business income and watching business deductions) for avoiding those audit triggers that can tax your construction company in more ways than one. (Updated 5/29/12)
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Harder than it looks – Changing business structures calls for careful planning
Winter 2008
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 594
Abstract: Contractors who are starting new businesses must be careful when choosing the form of ownership, or business structure, for those businesses. This article explains the types of business structure available, how each one operates, and some pitfalls that are inherent with the various structures. A sidebar discusses five things you must consider when choosing a business structure, such as the amount of liability you’re willing to assume and state regulations. (Updated 5/29/12)
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Contractor’s Toolbox – Beware of the invisible contract clause
Spring 2012
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 423
Abstract: Contracting with federal and state government agencies requires careful planning — especially when a public construction contract is involved. Not only can these documents be lengthy and complex but, in some cases, “invisible” mandatory contract clauses may be treated as part of the contract even if they’re not included. This article references a long-standing court case in which, following a contract termination, a contractor’s lost profits claim was rejected because the court presumed the contractor to be aware of a clause that wasn’t actually written into the contract. G.L. Christian and Associates v. U.S., 312 F.2d 418 (Ct. Cl.1963) General Engineering & Machine Works v. O’Keefe, 991 F.2d 775 (Fed. Cir. 1993)
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Asking the right questions about your profitability
Spring 2012
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 646
Abstract: In today’s economy, contractors must take any threat to their profitability seriously. Regularly asking the right questions about their profitability can help them keep their guard up. This article offers a few to consider. They involve keeping track of indirect costs, managing receivables and payables effectively, and addressing change orders properly.
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Owner compensation: What’s reasonable?
Spring 2012
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 684
Abstract: Controlling owners of closely held construction companies are generally free to set their own salaries and bonuses. But, under certain circumstances, the reasonableness of owner compensation can become an issue. This article examines a U.S. Tax Court case that outlines five factors to consider in determining whether a corporate shareholder/employee’s compensation is reasonable. Multi-Pak Corp. v. Commissioner (T.C. Memo 2010-139)
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Mission critical – Prequalifying subcontractors important in today’s economy
Spring 2012
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 799
Abstract: Prequalification is one of the most effective strategies for minimizing the risk of subcontractor failure. This process benefits subs, as well, by providing them with a competitive advantage once they’ve made the list. This article discusses the specific information that’s required in the prequalification process, and explains that Web-based prequalification networks offer significant benefits for general contractors and subcontractors alike. A sidebar lists examples of red flags that may signal potential subcontractor failures or defaults.
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Contractor’s toolbox – Tighten up job schedules without sacrificing quality
Fall 2008
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 417
Abstract: Building lean schedules is not only a prerequisite to getting through hard economic times; it’s a key to more profits in the future. This article explores several ways contractors can tighten up job schedules, such as building extra time into the schedule, making sure sites are ready when subcontractors arrive, starting new jobs on the same day each week (to better coordinate with subs and suppliers), and many others. (Updated 3/20/12)
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High-tech vs. hands-on training
Fall 2008
Newsletter: Construction Industry Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 417
Abstract: Contractors have traditionally used on-site, face-to-face training to instruct workers in procedures, safety, personal protection equipment and job functions. Although there’s nothing wrong with this conventional approach, there’s an alternative that can be equally, if not more, effective. This brief article goes into the pros and cons of both hands-on instruction and computer-based training through DVDs, CD-ROMs or the Internet. (Updated 3/20/12)