Fall 2012 issue of Horizons

CONSTRUCTION CONSTRUCTION

valuation provisions in buy/sell agreements still reasonable in light of recent financial performance? In addition, reductions in profitability and capital from the slowdown can result in risks to existing relationships with bankers and sureties. Communication is the key to maintaining and strengthening these relationships. Open, honest and timely dialogue is critical – avoid surprises at all times. By its very nature, the construction industry is prone to increased levels of risk. The recession within the industry has dramatically altered the construction landscape. Unfortunately, the recovery for the construction industry continues to move along much slower than any of us would like. The slowdown has intensified certain financial risks while controlling other risks such as safety remains critical. Contractors that understand and manage their risk exposure can most effectively capitalize on opportunities within the marketplace.

Other Risks One of the side effects of the economic slowdown in the construction industry is that planning for other important risks may be put aside.

Have you updated business continuity and disaster recovery plans? Are the

RubinBrown’s Construction Services Group We provide services to general contractors, specialty subcontractors and related companies in the construction industry.

Frank Hogg, CPA – St. Louis Partner-In-Charge Construction Services Group 314.290.3413 frank.hogg@rubinbrown.com

Glenn Henderson, CPA, CFP – Kansas City Partner Construction Services Group 913.499.4429 glenn.henderson@rubinbrown.com

Mark A. Jansen, CPA – St. Louis Vice Chair Construction Services Group 314.290.3208 mark.jansen@rubinbrown.com

Jim Massaro, CPA – Denver Partner Construction Services Group 303.952.1211 jim.massaro@rubinbrown.com

page 16 | horizons Fall 2012