Contractor

Showing 257–272 of 386 results

  • EVM puts project costs in perspective

    January / February 2013
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 727

    Abstract: When it comes to job costs, the one thing every contractor needs is perspective. With project data coming at them from all directions, obtaining the perspective needed to properly assess these situations isn’t easy. One way to process this information more efficiently and draw critical strategic conclusions is earned value management (EVM). This article explores EVM — a project management technique that measures job progress in dollars, giving contractors an objective assessment of both cost and schedule performance.

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  • IRS ruling may make it easier to deduct bonus accruals

    January / February 2013
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 999

    Abstract: Many contractors may distribute safety and performance bonuses for the previous year’s work after year end. Until recently, they could deduct these “bonus accruals” on their tax return for the “performance year” (rather than the “payment year”) only if by the end of the performance year they specified exactly how much each eligible employee would receive. Now, under IRS Revenue Ruling 2011-29, bonus accruals may be more easily deductible in the year accrued. This may be beneficial because it allows contractors to accelerate the deduction, deferring tax. This article discusses details of the ruling, including rules that must be met to claim the deduction. A sidebar looks at some exceptions to the Revenue Ruling.

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  • Construction Success Story — Local job prompts contractor to consider joint venture

    November / December 2012
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 484

    Abstract: In this issue’s “Construction Success Story,” a contractor considers proposing a joint venture with another area construction business. His financial advisor notes that such an arrangement can allow smaller construction businesses to split risks, increase bonding capacity and learn about newer, more sophisticated technologies. But he also shows the contractor how to avoid potential pitfalls.

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  • Are your contracts choking your cash flow?

    November / December 2012
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 705

    Abstract: Construction contracts — or, rather, the language therein — can start choking cash flow before work even begins. This article looks at some points to consider before signing on the next dotted line. It discusses negotiating a front-loaded billing schedule, achieving flexibility in retainage, clarifying the change order process, and matching cash outlays with receipts from the owner or general contractor.

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  • 5 questions contractors should ask before buying new technology

    November / December 2012
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 509

    Abstract: Contractors are constantly bombarded with offers of new and better technology. But it’s often hard for them to tell whether they really need the latest and greatest tech tool or are just trying to keep up with the Joneses. This article offers five questions that contractors need to ask before investing in anything — such as “What can this solution do for us?” and “Do we have the resources (and patience) to implement this technology effectively?”

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  • Strength in numbers — Why audited financial statements matter

    November / December 2012
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 974

    Abstract: Sound, trustworthy financial statements are key to any construction company’s success. That’s why every contractor should at least consider investing in audited financial statements. Many lenders and sureties require contractors to provide such statements before they’ll approve loans or bonding. Some local and state governments also provide increased work and project award capacity to construction companies with audited statements. This article discusses the contractor’s responsibilities during the audit process, while a sidebar explores the less thorough, but less expensive, options of a compilation or review.

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  • Construction Success Story — Contractor considers sending payroll packing

    September / October 2012
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 504

    Abstract: This issue’s “Construction Success Story” involves a general contractor who felt he was spending too much time handling payroll matters. When a colleague mentioned her positive experience outsourcing this function to a third-party payroll service, the contractor investigated further. His financial advisor felt that this solution can be appropriate for construction companies, given their especially complex payroll requirements. But the advisor cautioned that it’s important to find the right vendor, and listed some of the considerations to address.

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  • Track costs, cut spending with fleet management software

    September / October 2012
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 495

    Abstract: Regardless of how many vehicles are in a fleet, fuel costs and productivity levels can be tricky to manage. That’s why many contractors are turning to fleet management software. This technology allows them to gather a variety of vehicle-related data, enabling them to track costs and cut spending in this often expensive area of a construction business. This article examines how fleet management software collects data and how it can be used to fight fraud and improve job costing.

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  • Is the manufacturers’ deduction a worthy construction project?

    September / October 2012
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 766

    Abstract: Like completing a construction project, claiming the manufacturers’ deduction calls for a solid foundation (of documentation) and an intricate infrastructure (of calculations). But the effort may be well worth it. This article explains that the deduction isn’t just for manufacturers — it also applies to domestic production gross receipts (DPGR) derived from constructing or erecting buildings or other real property, as well as from substantial renovations of real property. But claiming the deduction is complicated, so the article goes on to discuss considerations that must be addressed — ideally, by a tax advisor.

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  • The IRS is watching — How contractors can cope with employee misclassification

    September / October 2012
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 991

    Abstract: Contractors who misclassify a bona fide employee as an independent contractor could suffer a number of costly fates. However, if they do inadvertently fall afoul of the rules, there is now a way to potentially mitigate the damage. This article lists the three primary categories of criteria the IRS looks at when determining whether a worker is properly classified, and how contractors who accidentally violate the rules can seek to lessen penalties through the IRS’s Voluntary Classification Settlement Program. A sidebar offers four ways to avoid misclassifying workers.

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  • Construction Success Story — Veteran contractor vets his suppliers

    July / August 2012
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 484

    Abstract: This issue’s “Construction Success Story” looks at the case of a contractor who went to his financial advisor for advice on how to vet prospective new vendors. The advisor described three basic traits of a good supplier, and went on to show the contractor how to set up a selection process.

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  • Build your bonding capacity with a solid foundation

    July / August 2012
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 742

    Abstract: A high bonding capacity is something for which just about every contractor strives. Getting the necessary underwriting from a surety gives a construction company the freedom to bid on jobs well suited to its strengths — not to mention bigger projects with greater potential for profitability. This article lists the elements sureties are looking for, such as strong financial statements, profitability and working capital. Timely, accurate work-in-progress (WIP) reports are also essential, as is ongoing communication with the surety.

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  • Now’s the time to start thinking about an ownership transfer

    July / August 2012
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 524

    Abstract: Contractors who wish to transfer ownership to the next generation (rather than sell to a third party) might be wise to start such transfers sooner rather than later — especially this year, before the $5.12 million federal gift tax exemption drops to $1 million in 2013 (absent congressional action). But, as this article explains, it’s not necessary to transfer the entire interest. Those wishing to maintain operational control might hold on to more than half of their interest, or, alternatively, set up a family limited partnership.

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  • What’s the true cost of your labor? — Think it through before adding or subtracting

    July / August 2012
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 991

    Abstract: Before either adding or subtracting employees, it’s important for construction companies to determine the true cost of each worker. Contractors need to look at expenses beyond just salary. And they need to bear in mind that there are costs in terminating employees as well as alternatives to hiring — such as engaging independent contractors instead of taking on more staff (though it’s important to abide by IRS rules). A sidebar lists the variety of payroll taxes an employer must keep track of.

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  • Construction Success Story — Observant contractor anticipates government audit risk

    May / June 2012
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 503

    Abstract: This issue’s “Construction Success Story” discusses a contractor who consulted his financial advisor after seeing an acquaintance’s company fail a government construction audit, leading to a halt on all job payments and putting the poor fellow’s contract at risk. The advisor showed how to best anticipate the risk of such an audit, and then explained the different types of government audits and some fundamental preparatory steps.

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  • Beware of pension pitfalls if terminating union contracts

    May / June 2012
    Newsletter: Contractor

    Price: $225.00, Subscriber Price: $157.50

    Word count: 526

    Abstract: Some contractors may try to slash labor costs and payroll expenses by parting ways with workers whose price tags have exceeded their limits. If the employees in question are union laborers, this can be an expensive proposition for a construction company — especially if the union has a pension fund. As this article explains, concession bargaining can often convince trade unions to forgo or give back improvements in pay and conditions in exchange for job security. Other alternatives include petitioning for union decertification or setting up separate enterprises to take on union projects.

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