Why are we experts in the Construction Industry?
Because we know…
- Cash is King. That it really is all about Cash.
- You should be reviewing Cash Flow from two perspectives every quarter: for the entire company (Statement of Cash Flows) and by Job & PM (Project Cash Flow Analysis).
- How to improve your company’s Billing and Collection processes. It’s all about standardized systems and practices.
- What an AIA G-702 is. And the importance of pay-when-paid, retainage reduction, and stored material clauses.
- You should be preparing a Contracts in Progress (WIP) Schedule every quarter.
- Underbilling is VERY BAD. A sign of poor project management, poor change order management, profit fade, or worse.
- A properly crafted Schedule of Values is critical to creating Overbilling and positive Project Cash Flow.
- Job Costing is very different for a GC that Subs everything, a Labor-intensive Electrical Sub, and an Equipment-intensive Sitework Sub.
- You should have a Strategic Plan. You should know how much you need to bill quarterly & annually to achieve Breakeven, Target Net Income, and most importantly, a Compensation level to justify your hard work and the risks you take.
- Volume kills and Profit thrills. And other warning signs of trouble: owner working for no pay, company not making a profit, running things by the seat of your pants with no or late financial management info.
- It’s critical for us to understand your estimating and bidding process so we can verify inclusion of all costs to complete. You’re great with direct costs. But we all too often see money left on table due to incorrect labor burdens, equipment rates, omission of indirect costs (a black hole), and incorrect overhead and profit markups.
- The difference between a Bonding Agent and Surety Underwriter. And what’s required to obtain and increase bonding capacity.
- The latest: construction accounting Revenue Recognition and Lease rules; 8 recent Tax Acts; and IRS Construction Industry Audit Technique Guide (revised on 4/19/21).