CONSTRUCTION AND REAL ESTATE are economic engines for the Garden State, fueling not only these sectors, but creating work for accounting firms, banks, environmental firms and law firms, as well. Here is a state-of-the-industry report, which also features some higher education projects, for 2018.
By Scott Derco, CPA, CCIFP, Partner, Construction Industry Practice Co-Leader
A trait amongst successful construction companies is the ability to generate and maintain positive cash flow. Poor cash flow can drive a contractor out of business, and one of the biggest potential drains on a company’s cash flow is an improper handling of change orders. It is not uncommon for disputes over payment of unapproved change orders to last several months or even years.
Citrin Cooperman’s practice professionals continuously stress to our clients the importance of educating the project management team on how to handle change orders and protect the company from a prolonged dispute. Field personnel must be able to recognize when work falls outside of the contract scope and communicate on a timely basis so that a formal change order can be submitted. Contractors can protect themselves by maintaining good documentation to substantiate their case. This includes maintaining daily journals, meeting minutes, as well as taking digital pictures of the job site each day. Also, it is a good practice to monitor and document change to site conditions, instances when trade contractors are stacked or when work is performed out of sequence, as well as weather conditions. Good documentation gives the contractor the best chance of getting paid in a timely manner.
To read the full article, go to: https://commercemagnj.com/building-bigger-better-new-jersey-2018-focus/