Congress, States Consider Legislation to Prevent PLA Mandates

On March 14, Sen. Jeff Flake (R-Ariz.) introduced the Fair and Open Competition Act (S. 622) to prevent federal agencies and recipients of federal funding from requiring contractors to sign controversial project labor agreements (PLAs) as a condition of winning federal or federally assisted construction contracts. Rep. Dennis Ross (R-Fla.) introduced a companion bill (H.R. 1552) in the U.S. House of Representatives that was reported favorably out of committee March 28.

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.

Bringing Health Care to Retail Centers

With hospital stays becoming more expensive, the federal government reducing the services it will reimburse, hospitals nationwide consolidating and fewer people traveling long distances for care, the physical spaces needed to deliver health care are changing rapidly.

For the construction industry, this means builders and developers have the opportunity to repurpose former hospital structures and develop ambulatory care centers, outpatient centers and medical malls. This trend can be seen across the country, and it shows no signs of abating.

Crowdsourcing a Charitable Beneficiary

In March, Faith Technologies, Menasha, Wis., gave $5,000 to the Boys & Girls Club with a little help from its social media community. Customers, partners and employees from across the country voted in an online poll to determine which of the four nonprofit organizations designated by Faith Technologies’ Giving Committee would receive the donation. The Boys and Girls Club won with 46 percent of the votes, followed by the American Heart Association with 35 percent of the votes; the remaining votes went to Earth Share and Junior Achievement.

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. 

Although residential construction enjoys the relative availability of new construction funding, commercial and industrial lending is still hampered by an industry-wide fear of failure. 

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.

What is your proudest safety moment?

"M. Davis & Sons is a fifth generation construction company that builds, installs and maintains corporate plants and facilities for national and international companies. M. Davis began as a tinsmith shop in 1870 and has evolved into a company that services Fortune 500 companies. 

Our mission statement says it all: To provide quality services to our clients while providing satisfaction, security and a safe workplace for our team. At the end of the day, we want our team members to return to their families."

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. 

 

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