In the construction industry, surety bonds are put in place to ensure a project is completed within the terms of the contract.

Contractors who are eligible for surety bonds have greater opportunities to win state, federal, and municipal construction contracts.

GC's typically look for subcontractors that are bonded because it adds an additional level of verification on their previous work history.

What factors go into qualifying for a surety bond?

Strong balance sheet, positive cash flow, availability of working capital, and job performance; to name a few.

To understand the health of your business, you need to know how working capital relates to cash flow.

Working capital is the difference between your current assets and current liabilities.

The larger the number, the more leverage you have to grow your business.

However, a lot of contractors are unaware of their working capital position and this can hinder your businesses growth.

Listen to this week’s Finance Friday to learn about how you can get better insights into your working capital:

The largest federal spending package on roads and bridges in over 70 years has just been passed. 

$550 Billion dollars will now be going into various infrastructure projects across the United States.

However, this new influx of civil work comes at a time when labor shortages are already plaguing the industry. 

Due to demand exceeding the available supply, skilled workers will become even more valuable than they already are.

"No time in the past generation or past ages have employees had more power," - Tatenda Tazarurwa, Director for Turner and Townsend

Here's what you can do to combat this uphill battle

Whether you’re just getting started or you’re looking to grow your business, leveraging financing responsibly will help accelerate your growth.

There are two main types of financing that you should understand; debt and equity.

Based on the current status of your business, one might be more beneficial than the other. 

Ask yourself: what are your current goals? What are you trying to accomplish? Do you need money to start a larger project?

Here's how you can utilize each of these options.

The lean approach to inventory management helps businesses align their inventory with demand.

Industries have worked for decades to cut costs by keeping on-hand inventory low, but it requires a careful balance. 

Just-in-time inventory management has caused major delays in commercial construction starts due to supply chain shortages across the globe.

So, how can you stay ahead of these material shortages?

Listen to this week's Walkthrough Wednesday

In commercial construction, marketing your business doesn’t come down to typical branding initiatives, like logos, websites, or brochures.

You build your construction brand by delivering quality work in the field.

However, you can only demonstrate that value once you’ve won projects where you can showcase that quality work. 

For new subcontractors, it’s critical to understand how to submit accurate, reliable bids that set you apart from your competitors. 

Money today is worth more now than the same sum in the future.

Why? Inflation.

Money can only grow through investments, and waiting to invest that same sum is an opportunity cost.

Understanding the time value of money helps you make smarter investment decisions by choosing the right projects to bid on.

So, how do you calculate time value of money?

Tune into this week’s Finance Friday to learn more.

The $1.2 Trillion infrastructure bill is steps away from the finish line. 

On Friday, the House of Representatives passed the bill by a vote of 228 to 206; sending the bill to the presidential desk.

Should the President sign the bill into law, it will allocate $550 Billion to civil works spending for roads, bridges, airports and rail systems. 

What does this mean for the future of the job market? 

Listen to this week’s episode of Walkthrough Wednesday to find out

A critical aspect of managing your construction business effectively is understanding liquidity ratios and how you can calculate them.

Current ratio, quick ratio, and days sale outstanding are important formulas that help you determine the strength and vulnerabilities of your business.

These should be calculated on a frequent basis so that unexpected expenses don't threaten the health of your business.

How are each of these calculated?

Listen to this week's Finance Friday episode to learn more.

The price for steel and aluminum products continues to increase as demand outweighs available supply.

This has forced many contractors to pay a premium for any materials they can scrounge together.

However, the US and EU recently reached an agreement to ease the tariffs on these products beginning December 1st, 2021.

With these tariffs lifted, a certain amount of steel and aluminum can be imported from Europe duty-free.

Here's everything you need to know about this agreement.