Construction Industry Highlights and Updates

On Friday, our firm McKonly & Asbury hosted our construction industry seminar.  We had several of the region’s top construction companies in attendance and some of the top experts as presenters.  Based on a conversation with various industry leaders, we attempted to cover some of the pressing issues facing contractors. We also wanted to present some new ideas and strategies in an attempt to challenge assumptions.

One of the top issues facing contractors is sales and use tax.  An important state tax update was presented by Jason Skrinak, CPA, of McKonly & Asbury.  Jason did an excellent job presenting on such topics as:

•    Proposed Pennsylvania Budget update

•    State trends in corporate taxation and differences among states

•    Sales & Use Taxes – Construction Activities

•    Recent Commonwealth court cases

Another topic that we continue to see opportunity for businesses to reduce costs is by using an Insurance Captive.  An excellent presentation was done by Norm Basso of E.K. McConkey.  Norm covered such topics as:

•    Methods for Risk Handling

•    Risk Financing

•    Captives - An insurance company that provides insurance to and is controlled by the owners or members

•    Eligibility Guidelines

•    Captive Structure

•    Why are Captive Insurance Costs Lower?

Another key tax savings strategy is the proper selection of tax accounting methods. Lisa White, CPA, of McKonly & Asbury presented an update on this key area of construction accounting.  She covered such topics as:

•    Update on proposed section 460 Regulation – tax accounting method

•    Tax Accounting Methods – cash, accrual, or hybrid

•    Long-term contract method: CCM, POC, PCCM

•    Percentage of Completion (POC)

•    Completed Contract Method (CCM)

•    Percentage of Completion or Capitalized Cost Method (PCCCM)

•    The American Recovery and Reinvestment Act of 2009

•    PLR 200930029 Update - Reimbursements to service technicians for trade equipment

•    LMSB Directive – Update

Diane Tokarsky of McNees Wallace and Nurick provided an in-depth update on legal matters, covering the following:

•    Mechanics Lien Claims

•    Contractual Provisions

•    Joint Checks

•    Restrictive Check Endorsements

•    Waivers

•    Recent Cases

•    Prevailing Wage Update

•    Project Labor Agreement Litigation

•    Labor & Industry Trends

No construction seminar would be complete without an update on bond insurance.  Karen Mummer of E.K. McConkey provided a first-rate update on reducing subcontractor financial risk.  She provided insights on the following:

•    Surety Bonds

•    Benefits of Bonding Subs

•    Indemnification

•    Availability of Surety

•    Qualify the Subcontractor’s Surety

•    Establishing a Bonding Policy

•    2009/10 Surety Forecast

We also felt sharing about Web 2.0 and social networking would be a good topic for contractors to learn about.  This type of marketing is being embraced by nonprofits, the retail industry and by professional service organizations, but to date is largely ignored by the construction industry (and many others).  I was able to present an update covering such topics as:

•    Networking in general

•    Trust & Like - Building Relationships

•    Five Steps to Networking Success

•    Why Social Networking is Important

•    Creating a Social Network

•    Benefits of a Social Network – Greater ROI

Overall, a very exciting day and the attendee’s evaluation forms indicated that the seminar was well received.  If you would like more information on this event or would like us to email you the seminar handout material, please contact me.