From the category archives: Business

Business

Qualifying for and Pursuing The R&D Tax Credit

When the topic of research and development (R&D) tax credits is discussed, chemists with lab beakers typically come to mind. In reality, it’s more accurate to envision construction superintendents and engineers in hardhats on a jobsite. More construction companies are taking advantage of the credit than ever before and are realizing substantial savings in the process. 

Recent changes in applicable law have allowed construction companies, engineering firms and architectural firms to reap the benefits of R&D incentives that come in the form of a federal tax credit to offset tax liabilities dollar for dollar. In addition to the federal credit, most states have R&D tax credits of their own. The combination of these incentives can provide major savings for qualifying companies.

Reduce Lien Exposure With Anti-Assignment Clauses

Property owners, general contractors, subcontractors and materials providers must understand their rights and obligations with respect to construction liens in order to avoid delays in finalizing a project (from the perspective of the property owner) or to avoid forfeiting lien rights (from the perspective of the subcontractor).

Find the Hidden Equity in Heavy Equipment

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? 

Three Ways After-Sales Service Aids Construction Efficiency and Profitability

  Time is money in the construction business. Any equipment downtime can be troublesome and costly. Plus, projects can take a serious hit for each day that a revenue-generating piece of machinery is out of service waiting for a replacement part. 

As such, construction equipment manufacturers must find new ways to optimize their businesses and avoid downtime, especially as competition grows from third-party parts vendors such as Amazon. After-sales service (i.e., the service delivered
after the initial sale of a new product) is often viewed as a margin and revenue opportunity, but having a well-oiled after-sales service operation—especially for heavy equipment manufacturers—can have a real impact on productivity and be a differentiator for brands and dealers in the space.

Capital Infusion: How to Optimize Forthcoming Construction Lending

  Many areas of the United States are seeing a resurgence in construction starts, but the question remains whether any restart of the economy will be sustainable. The lending industry has been heavily regulated since the Great Recession, and construction loans are not exempt from the regulation and oversight, which tends to chill enthusiasm for new lending. 

A Contractor’s State Tax Planning Checklist

Between federal laws, the taxing jurisdictions of the 50 states and the District of Columbia, and countless local jurisdictions, contractors and construction companies face unique tax challenges. However, with minimal planning and a proactive approach, unwanted tax consequences can be avoided. 

Considering that tax reform was a priority of the new administration’s campaign, economists believe substantial changes will be made this year to corporate and personal income tax rates. Given the likelihood of reform, it is important to consider the potential tax changes in relation to the business’ legal formation (e.g., Corporation, LLC, etc.), which could yield benefits given the expected decreases to the corporate and individual tax rates. 

Three Ways for Contractors to Mitigate Risk and Lower Insurance Premiums

Many business executives believe insurance brokers have control over the quotes they provide, but that’s not the case. Insurance carriers control the price, and they provide the best rates to companies that proactively manage their risk. The less risky a contractor appears, the fewer claims it’s likely to have and the “safer” the company looks. Therefore, the lower the premium they are likely to get.

Here are three ways general contractors can mitigate risk and make their companies more desirable to insurance carriers.

Dissecting the House Tax Blueprint

In June 2016, as part of Speaker Paul Ryan’s “Better Way” initiative, the House Ways and Means Committee rolled out its “Blueprint” for tax reform. This broad overview outlined Republicans’ talking points for the campaign trail and the anticipated showdown with the Clinton White House, if not a Democratic Senate majority. 

After a false start with the ill-fated Camp Draft, expectations were tempered for legislative action. The topline items read as a veritable wish list of pro-growth provisions that were hailed by tax coalitions and trade groups alike. The tradeoffs were largely ignored, with any prospective pushback muted by dismal electoral expectations. After an initial burst of coverage, the Blueprint receded as Congress left town, leaving all eyes trained on an increasingly surreal presidential race. 

Safety Leadership at All Levels

Nobody wants a jobsite incident to occur, but how a contractor responds to a worst case scenario is part of what separates it on the safety spectrum. 

Fisher Contracting Company, Midland, Mich., which performs civil infrastructure projects across Michigan, Kentucky and Tennessee, can attest. On a job last year, a scaffold wall bracket failed, causing an employee to fall to a lower level and suffer rib injuries. Upon review, Fisher Contracting determined the relatively new employee didn’t feel comfortable mentioning he was unsatisfied with the condition of the rented scaffold equipment.

Five Reasons for Contractors to Consider Environmental Insurance

  Construction companies rarely consider that they may end up in court for performing work that damaged the environment, but it happens more frequently than contractors may think.

The U.S. Environmental Protection Agency (EPA) has determined that construction contractors have a significantly high potential for contributing to environmental damages. The agency considers general contractors, subcontractors, engineers and architects as suspect when it comes to environmental pollution and the resulting damages pollution causes. Yet, some contractors do not recognize the significant risk of environmental claims.

 

Three Contract Options for Differing Site Conditions
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Construction’s Cybersecurity Challenge
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A Small Team With a Big Heart for Service
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