Construction Industry Advisor – Summer 2016

Summer 2016Construction Industry Advisor – Summer 2016

Get Ready for New Lease Accounting Rules

Earlier this year, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, the Board’s long-awaited overhaul of its lease accounting rules.  The ASU makes extensive changes to the treatment of lease transactions, particularly for lessees.  This article explains how the ASU may affect contractors, while a sidebar explains why it will become more important to separate a contract’s lease and nonlease components.

Pay Attention to “No Damages for Delay” Clause

Construction contracts often contain “no damages for delay” clauses, which prevent a contractor or subcontractor from recovering delay damages from a property owner or general contractor.  Whether, and to what extent, parties to a contract can enforce these clauses depends on the contract’s language and state law.  This article explains why it’s critical for contractors to understand applicable state law and the proposed language of a clause when negotiating contracts.  C&H Electric, Inc. v. Town of Bethel, 96 A.3d 477 (Conn. 2014)

Show Me the Money -Ways to Keep Your Profits on Track

While the U.S. economy continues to improve, contractors must carefully watch their bottom lines. This means keeping track of just how increases — or decreases — in profitability can affect your construction company. This article presents some ways for construction companies to maintain profits, including reviewing overhead, managing receivables and payables, and controlling change orders.

Contractor’s Toolbox – Four Ways Contractors are Using RFID Technology

Radio frequency identification (RFID) technology has proven to be a powerful tool that can help contractors manage equipment and materials, reduce theft, enhance efficiency and improve safety.  This article highlights four ways this technology is being used in construction.

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