May/June 2012
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| Restructuring your debt — Construction companies can keep it together | |
 | Some construction companies have gone under these past few years, while others have lost substantial business or taken on heavy debts. But, for those in the latter category, there are ways to keep it together. This article explains the difference between “canceled” debt and “charged off” or “written off” debt and how to stretch out payments via cancellation of debt (COD) income. It also explores swapping debt for equity and explains how to work with creditors. A sidebar discusses why, for many contractors, finding a way to restructure debt is preferable to declaring bankruptcy. Read More |
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| That classic quandary: Buy, lease or rent? | |
 | It’s a classic construction quandary: whether to buy, lease or rent equipment. This article examines the cost and tax implications of each option. Some combination of renting, leasing and buying may allow a construction company to meet both its short- and long-term equipment needs. Determining the right mix, however, requires careful evaluation of its needs and financial situation. Read More |
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| Beware of pension pitfalls if terminating union contracts | |
 | Some contractors may try to slash labor costs and payroll expenses by parting ways with workers whose price tags have exceeded their limits. If the employees in question are union laborers, this can be an expensive proposition for a construction company — especially if the union has a pension fund. As this article explains, concession bargaining can often convince trade unions to forgo or give back improvements in pay and conditions in exchange for job security. Other alternatives include petitioning for union decertification or setting up separate enterprises to take on union projects. Read More |
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| Construction Success Story — Observant contractor anticipates government audit risk | |
 | This issue’s “Construction Success Story” discusses a contractor who consulted his financial advisor after seeing an acquaintance’s company fail a government construction audit, leading to a halt on all job payments and putting the poor fellow’s contract at risk. The advisor showed how to best anticipate the risk of such an audit, and then explained the different types of government audits and some fundamental preparatory steps. Read More |
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This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and accordingly assume no liability whatsoever in connection with its use. ©2012 • CONmj12 | |