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Category: Contractors/sub-contractors

August 17, 2021

Lowering the Bar on Performance and Payment Bonding

Acquiring or increasing your firm’s bonding capacity can open a whole new market of jobs. It can allow you to take on a multitude of public works projects or larger, more profitable, higher-profile private jobs that require a more hearty bonding capacity than what you, or your agent, are used to. The traditional method of laying out up to 20% of the bond value in cash collateral may be uncalled for if you approach your agent in the right way… Read more ›

August 17, 2021

Payroll Tips for Contractors

  Processing payroll is a critical administrative task that directly ties to your construction company’s labor costs, profits and ability to comply with labor laws. Yet staying on top of payroll can be daunting. Depending on the job, your payroll staff may have to account for union requirements, prevailing wage rates and certified payroll — not to mention various tax rates and rules of multiple jurisdictions. Because of such complexities, mistakes are common. Making payroll processes more accurate and efficient… Read more ›

June 23, 2021

Why Effective Cash Flow Management Is Crucial for Subcontractors

“Why Effective Cash Flow Management is Crucial for Subcontractors” was originally published in the April 2021 issue of The Contractors Compass (American Subcontractors Association). Click here to view.  A good way to think about cash flow is to see it as your business’ wallet. Cash flow reports are crucial tools for business owners and managers to help them understand where their business’ money is coming and going, and when. Making decisions based on that information is key. Establishing good accounting… Read more ›

August 21, 2020

5 COVID-19 Obstacles Construction Companies Need to Navigate

Although the novel coronavirus (COVID-19) pandemic has walloped most U.S. businesses, how your business recovers will largely be construction-industry-specific. For example, most construction companies need to address disruptions to project schedules and overseas supply chains. They may need to renegotiate building contracts and find replacements for workers who are no longer available due to travel restrictions. Depending on your niche, the fallout from COVID-19 could last months and possibly even years. Here are some tips on handling five major obstacles… Read more ›

July 24, 2020

How to Best Determine A Builder’s Risk Premium

  Builder’s risk insurance provides protection for a structure that is damaged during construction. These policies are usually broad. In fact, the coverage is generally extensive enough to include construction equipment and machinery, as well as materials, fixtures, and appliances — all vital parts of a completed structure. It can also cover temporary structures, such as office trailers, on a project site. If a loss occurs, the insurance company will pay to repair the damaged property. However, keep in mind… Read more ›

July 14, 2020

Lowering the Bar on Performance and Payment Bonding

Acquiring or increasing your firm’s bonding capacity can open a whole new market of jobs. It can allow you to take on a multitude of public works projects or larger, more profitable, higher-profile private jobs that require a more hearty bonding capacity than what you, or your agent, are used to. The traditional method of laying out up to 20% of the bond value in cash collateral may be uncalled for if you approach your agent in the right way… Read more ›

June 23, 2020

Small Business Administration to Publicly Release Names of PPP Loan Recipients

In response to increasing public pressure, the Small Business Administration announced on June 19 that it would release the names of Paycheck Protection Program (PPP) loan recipients awarded at least $150,000 in funds. No timeline for the disclosure has been announced, but the SBA said it would “disclose the business names, addresses, NAICS codes, zip codes, business type, demographic data, not-for-profit information, jobs supported, and loan amount ranges as follows:” $150,000-$350,000 $350,000-$1 million $1-2 million $2-5 million $5-10 million Participants… Read more ›

June 18, 2020

PPP Flexibility Act of 2020 Results in Additional Guidance, a Revised Loan Forgiveness Application and a New EZ Application for Qualifying Borrowers

Since passage of the Paycheck Protection Program Flexibility Act of 2020 on June 5, 2020, the Small Business Administration has continued to bring current and prospective borrowers up to speed through a series of interim rules for the program, as well as the release of a revised loan forgiveness application, a revised loan borrower application, and a new EZ form of the loan forgiveness application. Updated PPP Loan Forgiveness Application (and a new EZ Version) On June 17, the Small… Read more ›

May 16, 2020

New SBA Guidance Addresses Safe Harbor Deadline Extension, Audits of Businesses That Receive PPP Loans; Employer Requirements When Employees Refuse Recall to Work

Last week, the Small Business Administration clarified which businesses can expect to be audited once they certify in good faith that they received Paycheck Protection Program loans based on economic need. The SBA also delivered requirements for Maryland employers whose furloughed workers refuse to accept a recall to work. Read more below. Good Faith Certification and the Safe Harbor Deadline Extension The goal of the Paycheck Protection Program since it was established in late March under the CARES Act has… Read more ›

May 8, 2020

The IRS Clarifies the Deductibility of Paycheck Protection Program-Funded Expenses

The IRS has issued new guidance addressing a question that has lingered since the launch of the Paycheck Protection Program (PPP) — whether expenses paid for with forgiven, tax-free PPP loan proceeds are deductible business expenses under Section 162 of the Internal Revenue Code (IRC). The guidance in IRS Notice 2020-32 doesn’t provide the answer borrowers hoped for, but that may yet come. The root of the question The Coronavirus Aid, Relief and Economic Security (CARES) Act created the widely… Read more ›