Real Estate & Construction Accounting Blog

This issue of Construction Connections includes the following articles:

• Understanding the Energy Efficient Deduction
• National Construction Industry Outlook
• Management Perspective: Claims Avoidance as Means and Methods

Understanding the Energy Efficient Deduction

Skoda Minotti, along with CLS Facility Services, invites you to a seminar on Friday, February 11th to learn how you can take advantage of the energy efficient tax deduction, which allows building owners to deduct a portion of the expenses incurred for energy efficient building expenditures.

More specifically, the presentation will cover the following:

• Real potential to save 35%-55% on energy costs for buildings 20,000 ft2 +
• An overview of general lighting knowledge
• Information concerning government regulations on mandatory phase outs of non-energy-efficient lighting
• What lighting products need to be replaced and when
• What lighting products are available and which type should you upgrade to
• Rebate money available from the local utility companies
• Getting this accomplished without disruption to your business

We will provide attendees with an estimate of their savings through this deduction. Please bring the following items with you so we can complete this calculation:

• The square footage of your building or buildings
• The type of lighting currently in your facilities
• The name of your utility company and your rate per kWh

Speaker bios:

• David R. Walter, CPA, MBA, Manager, Skoda Minotti
  Dave is a manager with Skoda Minotti’s Tax Planning and Preparation Department and is involved in the Real Estate and Construction Group.  He provides tax planning and advisory services, conducts tax research for clients and serves as a business advisor helping clients grow their business and make strategic tax decisions.  He specializes in the area of real estate and construction working with tax laws and strategies that affect this industry to help clients optimize their tax position.  He is involved with National Association of Industrial and Office Properties (NAIOP) and Construction Financial Management Association (CFMA).
   
• Phil Burne III. VP Sales and Marketing, CLS Facility Services
  Phil is an innovative strategic executive with over 25 years’ experience in both Fortune 500 and entrepreneurial endeavors. Phil has served as an officer of a Fortune 500 company as Vice President, Sales.  He has also held the positions of CEO, Executive Vice President Sales / Marketing in emerging companies, and has been involved with developing capital investments.  Phil brings a unique and creative approach to the facility management industry, with a perspective on how CLS delivers quality service to our clients.  He has been directly involved with CLS roll outs of lighting retrofit projects for several national chains, and has great experience in the lighting industry.

Event Information:
Friday, February 11th
7:30: Breakfast and Meet & Greet
8:30 - 9:30 am: Presentation and Q&A

Cleveland Marriott East
26300 Harvard Road
Warrensville Heights, Ohio 44122

Click here to register - $20 registration fee applies

National Construction Industry Outlook

Just two years removed from the 'black swan' crash of the financial markets that exposed a deep global recession, the national economy seems to be on its firmest footing since the winter of 2007-2008. Many questions still remain about the duration and vigor of the recovery, but several respected observers have released outlooks for 2011 that show at least guarded optimism. Couple with recent economic data, these forecasts all point to the passing of the bottom of the market.

In its 2010 Construction Outlook report, released on Oct. 29, McGraw-Hill Construction estimates that construction starts nationwide will show a decline of 2 percent in 2010, followed by an increase of 8 percent in 2011. That forecast is in line with forecasts made earlier in the month by Reed Construction Data, the American Institute of Architects and the Associated General Contractors of America. Having four concurring forecasts is absolutely no surety of a better market, but the tight range of the expected growth - from a low of 3 percent to a high of 8 percent - suggests that all are drawing similar conclusion from the myriad of data.

Click here for more information on the construction industry outlook.

Management Perspective: Claims Avoidance as Means and Methods

The most effective contractors are the ones who look at the means and methods for a project to identify ways they can build the job more efficiently. A creative or innovative plan for delivering the project can mean success in landing the job and it certainly can improve a project's profitability.

In a competitive construction environment, contractors and owners will do better if they also make handling claims situations a part of their means and methods.

Let's be clear. The subject here isn't making claims a part of means and methods but rather managing situations at the earliest stages of the project to keep them from devolving into claims later. Experienced contractors and for that matter, experienced owners understand where the weak spots are in a project before it gets underway. By the time the project is 30 percent completed it is clear where any problem areas are headed. That means that the most critical time for claims avoidance is during the early stages, between scope review and the first few months of construction.

Click here to read the rest of this article.

Prior issues are available at our E-Newsletter Archive. If you would like to subscribe to this free quarterly e-newsletter, send an email to info@skodaminotti.com.

If you have any questions about any of these articles, post a comment below or please contact our Real Estate & Construction Group at 440-449-6800.