Construction Fraud: How Does it Happen?
Many construction business owners think they know their employees too well to fall victim to fraud. Or perhaps they focus on only one or two vulnerable areas. But there are many ways you could lose hard-earned money, and employees — even trusted, long-term ones — may be more prone to committing fraud during these difficult economic times. Full article…
How do You Look to Your Surety?
Recently, bonding firms have been extra cautious because of the difficulties that so many construction companies have had in staying solvent. That’s why, now more than ever, it’s important for contractors to determine just how their business looks to their surety. Working capital and tangible net worth will likely sit near the top of any surety’s list of critical attributes, as will receivables and debt, performance consistency, and work in progress. Full article…
Cash: A Contractor’s Best Friend
Strong cash flow is important for every business. But with projects scarce and stimulus dollars still slow to arrive in many areas, having enough money on hand to operate competitively could mean the difference between success and bankruptcy for a construction company. Indeed, one could say that cash is a contractor’s best friend. Like many construction business owners, however, you may see cash flow forecasting as either a distraction from your day-to-day activities or as a daunting, implausible undertaking. But the truth is that getting a clearer picture of where your company’s dollars are going isn’t as difficult as you might think – and doing so can help keep your relationship with your “best friend” going strong. Full article…
Go on the Defense with an Escalation Clause
Contractors everywhere have experienced the pain of rising construction materials costs and less work, putting their businesses in financial jeopardy. How can you fight back? Include an escalation clause in your job contracts. Full article…
