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Spring 2015 – Quarterly Construction Newsletter

In this edition:

The tax implications of the new revenue recognition standard

Last year, FASB issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. The new standard, which takes effect in 2018 for privately held companies (2017 for public companies), creates a single, comprehensive revenue recognition model to replace today’s industry-specific — and often inconsistent — rules. This article offers a comprehensive review of the new standard and its potential tax implications. A sidebar looks at how progress on a contract might be measured under the new standard. Read more

8 tips for improving productivity

In an industry as labor-intensive as construction, there are few things that can hurt a contractor’s profitability more than unproductive workers. This article offers eight tips for improving productivity, including focusing on unproductive time, conducting an activity analysis, and taking advantage of technology. Read more

How to tackle the issue of profit fade

Profit fade is a financial malady that typically occurs as a contract nears completion. Contractors who have experienced profit fade on a past project know just how frustrating it can be to see their expected profits going down the drain. This article explains how to nip the problem in the bud, including looking at historical data and getting a handle on contract language. Read more

Contractor’s Toolbox – Working out of state? Don’t leave home without a license

In today’s competitive environment, an increasing number of contractors are looking for business opportunities that cross state borders. This article warns that contractors considering this strategy should start planning as early as possible to give themselves plenty of lead time to comply with out-of-state licensing requirements. Read more