FIVE HOT TOPICS FOR CONSTRUCTION COMPANIES IN 2020
1. COVID-19 WILL DIRECTLY IMPACT CONSTRUCTION PROJECTS.
Planning now can help protect your employees and mitigate risks. Warren Averett is acutely monitoring COVID-19 and its impact on the construction industry. Contractors should act now to manage cash and define steps for the weeks ahead. Our advisors are equipped to help you through this and answer any questions that you have.
2. KNOWING YOUR TRUE OVERHEAD COST AND INDIRECT JOB COSTS CAN HELP MANAGE YOUR CASH AND MITIGATE RISK DURING THE GLOBAL PANDEMIC.
Do you know your true overhead and indirect job costs? At the end of the week, do you know if you were profitable? Taking a moment to understand your company’s metrics can help you make decisions that drive you forward during these uncertain times.
3. HAVING AN OWNERSHIP TRANSITION PLAN IS NOT ENOUGH FOR SUCCESSION PLANNING.
Does your company have a contingency plan in addition to your ownership transaction plan? If someone were to leave the company unexpectedly, a contingency plan can help transition tightly held responsibilities.
4. THINK YOU ARE TOO SMALL FOR A CYBERSECURITY ATTACK?
Think again. All businesses are at risk of a cyber-attack. The best way to protect yourself is to be proactive. Things like risk assessments, vulnerability scans, internal controls and more can help you protect your data.
5. UNDERSTANDING THE OPPORTUNITY ZONE PROGRAM’S RULES CAN PROTECT YOU FROM POTENTIAL LIABILITIES AND CONSTRUCTION DISPUTES.
The Opportunity Zone Program was established in the 2017 Tax Reform to promote economic development in low-income areas. While construction companies aren’t investing in the program, it does directly impact contractors because of the qualifying requirements for Opportunity Zone Funds. Builders should negotiate contract language to protect them if the project gets delayed outside of their control to avoid potential liabilities and costly disputes.
Having an advisor who understands your industry can help you navigate the consistently changing economy and help you understand how COVID-19 is impacting your business. Don’t look back a year from now and wish you had started today. Talk to your advisor to begin implementing these practices now.
MEET THE EXPERT
Cristy Andrews is a Warren Averett Tax Member with proven experience specializing in accounting and tax services for clients in the real estate and construction industries. Reach her at 334-260-2339 or Cristy.Andrews@warrenaverett.com.