This week’s Construction Financial Manager Review broadly addresses recent developments and topics of conversation in the construction industry. We try to provide you with major headlines and interesting insights to keep you on the cusp of industry news. We hope you enjoy this week’s review and would love to get your feedback.
What We’re Reading
Key Articles from Across the Web This Week
Smarter technologies must be adopted as companies aim to be leaders of the new pack
As long-term asset construction projects and facility management contracts come to an end, there will be those companies prepared for the new digitized era and those that may struggle to keep up. Read the full article on Construction News.
Top 4 construction contract provisions to be negotiated with the owner
Construction contracts are complicated documents that try to balance the needs of many different parties involved in a project. Contractors face much uncertainty when delivering on their contract responsibilities, so it’s important to design contracts that are fair in allocating risk. Read the full article on The Jobsite.
Housing advocates look to next president to accelerate residential recovery
Housing experts are hoping that the next president — whether it’s Hillary Clinton or Donald Trump — will be more aggressive in giving the housing industry the growth bump it needs, according to The Hill. Read the full article on Construction Dive.
Americans really want more infrastructure spending
Decaying highways, pipes, and railroads aren’t only top-of-mind for the average CityLab reader—nearly half of registered American voters believe that the state of their country’s infrastructure has deteriorated in the last five years,according to a national poll conducted in mid-June by the Association of Equipment Manufacturers. Read the full article on CityLab.
Home Depot rides housing boom to record sales, profit
The 2016 Olympic Games got off to a spectacular start on Friday, Aug. 5. Despite earlier reports that the city was still a huge construction site, Rio’s Olympics public relations group tells Quartz in an email that all stadium constructions are now “100% done,” excepting a few serious glitches at the Olympic village. Read the full article on CBS.
What We’re Writing About
Recent Articles by zlien Relevant to Construction Finance
Subcontractor defects are covered by CGL policies in New Jersey
Relationships between insurers and insureds are always touch and go. Claims become especially tricky when made for defective work. Depending on the type of policy and the exceptions and exclusions in the contract, these claims can be paid or fall by the wayside. Read the full article.
How to reduce DSO of construction invoices
Credit teams in the construction industry constantly battle late payments. In particular, subcontractors and suppliers performing labor or supplying materials to help permanently improve a property are farther removed from the money behind the project, and, therefore, must often deal with dreaded DSO (Days Sales Outstanding). Read the full article.
How subcontractors can grow business by minimizing risk
Small subcontracting firms looking to grow a business may be afraid to take on larger, higher-paying jobs for a few reasons. These jobs typically require a larger cash outlay, and the contracting firm often gets paid incrementally through installments over weeks or months. This can wreak havoc on cash flow — and then there’s the greater risk that the client won’t pay at all. Despite the credit-heavy nature of construction work, there are several ways subcontractors can grow business while minimizing their risk threshold. Read the full article.