Minding Your Money Tree When money trees are small, they are easy to care for with a watering can. As they mature, it will be easier to use a garden hose. Then comes the time when watering the money tree requires a full-blown irrigation system that accounts for correct timing, accurate measurements, and appropriate filtering mechanisms.  The same is true for many whose “money tree” is the construction business they own. They typically start out small, watering by hand, and th

“Overhead schmoverhead! Who cares?” Your profits  care.  Your cash flow  cares. And if you want to stay in business long-term, you   should too . Most contractors understand what profit is and why cash flow matters. However, the critical junction of the two often gets overlooked: your overhead and how you allocate it when pricing jobs. Overhead isn’t just a number your accounting professional tracks. It’s a real cash eater  if it’s not adequately accounted for—and it directly

The Bridge You can walk onto several construction job sites and find a few tools that serve multiple purposes. For instance, a power drill   can be used for drilling holes, and by changing the bit, it can also be used to tighten or loosen screws. Similarly, a pipe wrench can be adjusted to various sizes, and a circular saw performs different tasks with a blade change. In each case, the tool is the bridge. Same tool, different uses. In construction accounting, the tool known a

In a few recent posts (listed below), information was presented to help construction contractors understand how implementing the right systems in their financial dealings allows them to take control and steer toward building a debt and risk-resilient construction business.   The Hidden Cost of Debt in Subcontracting (Understanding actual job costs up front reduces the need to borrow just to stay afloat.)   Budgeting as a Financial Risk Management Tool (A proactive budget le

We’re exploring the difference between being profitable on paper and having cash available. It’s About Those Apples Do you remember those long-ago lessons concerning addition and subtraction where you were told you had ten apples and asked if you gave four apples to your friend, how many would still be in your possession? Recall it was about the plus (+) or the minus (-) and the equals (=).  In today’s lesson, boys and girls, the question is, “If you have ten apples and promi

Just as you take time to address risks on the jobsite, you must take time to address risk from a financial perspective. Learn why the...

Talking About Construction Industry Robots You know about these “robots”: they’re all about technology. From drones to robotic PPE,...

Before we proceed, let’s define risk mitigation. Note that it  is NOT the same as risk elimination. Risk mitigation : the process of...

Choose a Viable Business Model Whether you choose to be a general contractor, a specialized subcontractor, or a production provider (such...

Understanding What Choosing a CPA Means Yes, you WANT someone who can prepare tax reports for your construction business (and many people...

When subcontractors find that pieces of the money puzzle are missing, it could be because they are pricing the same way their GC prices,...

In our last post concerning Margin vs. Markup , we told you that we would “show you how to convert markup to margin so you can price your...

This vs. That Because you’re in construction, you know the difference between certain things that many others often get confused about....

Just as a good set of binoculars allowed the leaders of pioneer groups to see what they were moving toward, what was on the horizon, and...

Don’t let estimates and spending plans get confused. While they work together, they have different roles to play in managing construction...

You’ve heard the saying “Not my circus, not my monkeys.” And you know what it means – it’s about a problem that is not your...

You probably don’t remember all the times you “got it” as you were growing up. From learning  how to walk to understanding  how to read,...

If you or someone you know has ever had a leg injury that called for the use of crutches to move about, you know how difficult and...

Supply chain problems, supply chain disruptions, supply chain issues! It’s everywhere. Neither you nor our firm can fix a worldwide...

The first two parts of this four-part series concerning building an excellent bid package were Knowing What to Bid on a Construction...