November 2012

Contractor – November / December 2012

Strength in numbers

Why audited financial statements matter

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.

5 questions contractors should ask before buying new technology

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?”

Are your contracts choking your cash flow?

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.

Construction Success Story

Local job prompts contractor to consider joint venture
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.

Read the full edition of the November / December 2012 Contractor Newsletter.

If you have any questions about this newsletter or other construction / real estate industry news, please contact Michael.Malinoski@ParenteBeard.com.

ParenteBeard LLC: Confidence Through Clarity