Construction Archives

New Tax Incentives Construction Companies Should Watch in 2026

Under the new bonus depreciation rules, construction companies may be able to immediately deduct up to 100% of the cost of certain qualified property, including eligible equipment, if the property meets IRS timing and eligibility requirements.

Construction companies routinely work with retainage provisions that allow project owners to withhold a portion of payment until specific contractual obligations are satisfied. While retainage serves an important purpose in managing project risk, it can also affect how a company’s financial position is presented. Recent guidance from the Financial Accounting Standards Board (FASB) provides additional clarity on how retainage should be presented and disclosed under ASC 606, helping contractors better understand the financial impact of these balances.

Construction business owners often focus heavily on revenue growth, but valuation experts look deeper into how efficiently a company converts work into profit. Buyers, lenders, and investors want to see stable operations, disciplined financial management, and the ability to maintain profitability through changing market conditions. Metrics tied to pricing, productivity, backlog, and operational efficiency all contribute to a construction business’s value.

Material price volatility has become one of the most significant financial pressures construction businesses face in 2026. Prices for key inputs such as steel, lumber, concrete, and copper are increasing between 5% and 50% in many markets. For contractors operating under fixed price agreements, those swings can quickly turn profitable projects into financial liabilities.

Key Takeaways Audit readiness starts with organized contract files, clean job costing, and consistent approvals. Auditors focus on whether contracts, change orders, and documentation support billings and costs. Strong audit preparation also improves profitability by strengthening cost control and pricing accuracy. Financial audits and reviews can be more challenging in construction because project accounting is …

Key Takeaways Construction demand in 2026 is uneven, making disciplined budgeting essential. Labor shortages and material costs remain significant risks to project profitability. Contractors face a limited margin for error as spending remains relatively flat. As 2026 begins, construction business owners are operating in a market defined by mixed signals. Some sectors continue to see …

Key Takeaways A well-built construction budget gives contractors a dependable roadmap for controlling costs, managing resources, and protecting profit. Job costing systems, cost codes, and construction accounting software help companies track spending accurately through every phase of a project. Partnering with an accounting advisor ensures budgets are realistic, regularly monitored, and aligned with long-term business …

Key Takeaways Seasonal slowdowns can be managed through data-driven forecasting, flexible budgeting, and proactive financial planning that anticipate shifts in demand. Diversifying revenue streams and maintaining strong cash flow ensure profitability even when considerable projects pause or material costs fluctuate. Leveraging the One Big Beautiful Bill Act and investing in workforce development builds long-term stability …

Key Points An emergency fund is a financial buffer that helps firms cover payroll, materials, and obligations when disruptions strike. Planning for multiple scenarios and sizing reserves appropriately makes businesses more resilient. Use new opportunities, like those in the One Big Beautiful Bill, to strengthen your financial position and fund future growth. Navigating Financial Uncertainty …

Audits don’t always give advance notice. In construction, they often show up when you go after bigger jobs, expand your bonding capacity, or secure new financing. Being unprepared can stall opportunities and raise questions about your financial controls. The good news? You can avoid surprises with the proper foundation. These nine steps will help you …