"I'll do your family's dental work for free if you build a deck onto my house."
In the News
Builders and contractors who buy commercial general liability (CGL) insurance policies with the impression that they will keep them safe from allegations of inadequate or faulty work must be aware of what their policies cover. It's important to know that a CGL policy does not provide coverage for work that is faulty.
Although you usually can't deduct typical "commuting" expenses from home, you may qualify for a special exception if you're away working on temporary assignments. But the IRS and the U.S. Tax Court won't allow borderline deductions, as evidenced by one case involving a construction worker.
They say hindsight is 20/20. You can take advantage of that hindsight by holding regular project closeout meetings to find nuggets of truth about how the project went and learn from them.
It's obvious that without customers, your company wouldn't be in business. But not all customers are alike. Some account for a big percentage of your profit, while others' contributions may be negligible.
While personal credit ratings and FICO scores are kept up automatically-- like scoreboards at sporting events--business credit scores are more hands-on and reserved for the proactive and savvy businessperson. There are certain key points about business credit scores and credit ratings that can increase your awareness and your ability to access financial markets.
It's no surprise that construction sites are ranked high on the list of the most dangerous workplaces. Nail guns, heavy falling objects, saws and other items are often the cause of serious injuries. The possibility of serious injuries or fatalities is higher in construction than most other industries.
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.
As you may know, contractors have multiple accounting methods to choose from. But some are off-limits to certain contractors. As your construction company endures the ups and downs of a bumpy industry, it's worth your while to review your options.
All construction companies store equipment, from a garage full of tools, to a scissor lift, from something as simple as an auto trailer, to something as complex as a hightower crane.