Real Estate & Construction Accounting Blog

• Capacity: refers to the skill and expertise that the contractor possesses in order to complete the job.
• Capital: refers to the ability for a contractor to financially complete the job,...

In today’s economic conditions, many contractors have decreased their bids in order to win work and pay their employees.  However, price reduction is not always the answer.  Contractors that decrease bids to increase top line revenue rarely see it translate into an increase in profitability.  This can be primarily attributable the operations management of the contractor. 

There are six steps to streamline your operations management process and increase profitability:

1. Assemble a cross-functional...

The Ohio Department of Development (ODOD) will continue to accept applications from owners of historic buildings for Ohio tax credits until September 30, 2010. The Ohio Historic Tax Credit Program provides a tax credit equal to 25% of qualified rehabilitation expenditures, which generally include construction for the building's structure and interior that meets the U.S. Secretary of the Interior's historic rehabilitation standards. The credit is maxed out at $5,000,000 per project. 

To...

Like many Americans, at one time or another, you’ve probably responded to a mail-in offer expecting a rebate check in return. Perhaps like some Americans, you’ve received that check and, for one reason or another, have left it uncashed. Ever wonder where those unclaimed funds go?

In 2006, the State of Iowa, joined by 45 other states, instituted an action against the largest rebate processing company in the country and three of its largest customers for an amount over $120 million. This action...

The Environmental Protection Agency (EPA) has delayed enforcing its new Lead-Safe Renovation, Repair and Painting program. The new program requires contractors to be certified (through lead-safe training) to perform work that disturbs more than six feet of lead-based paint in a pre-1978 home, apartment, school, daycare center, or other facility occupied by a pregnant woman or child under the age of 6. The final rule implementing the program originally took effect in April, but will not be...

In today’s economy, it is crucial to keep good tenants. The following nine points will help you maintain maximum occupancy in an uncertain environment:

1. Understand the tenant’s business. Research their industry so you can credibly talk about their business, and make them feel that you understand their concerns in today's economic conditions. 
2. Respond reasonably to rent relief or downsizing. This entails a two-step process consisting of listening to the request, and then formulating a personal...

According to an article in Retail Traffic, major big-box retailers have informed about 700 shopping center owners that they will be reducing their rent 25%, no questions asked. Included in the letter was their first rent check, at the reduced rate. Owners and retailers have both been hurting in this poor US economy and each are trying to keep their head above water by reaching a common ground. With vacancy rates rising and retail sales decreasing, roles have switched from the past ten years and...