Spring 2011 issue of Horizons

Subcontractors and Suppliers – Due Diligence is Key It is important to be diligent in assessing the financial health of all subcontractors and suppliers during the bidding process. It is equally important for subcontractors to prequalify owners and general contractors. Monitor the financial stability of those that you will be working with closely – your success and bottom line is entwined with theirs.

current slowdown, many contractors are looking to the public sector for additional work opportunities. The devotion of adequate resources to business development efforts is critical. Consider More Joint Ventures An effective way to reduce risk is to partner with other contractors through the formation of a joint venture. Specifically, if you are seeking work in a new industry or region, establishing a joint venture with a partner who is more familiar with the issues in the new locale should mitigate risk. Working in a joint venture with a reputable partner could also improve your surety ratings during the prequalification process. Consideration and implementation of these key points should put your company in a position to “weather the storm” during 2011 and excel when economic conditions become more favorable.

Increase Your Business Development Efforts

Demand that your employees think like owners. Encourage them to participate in networking events throughout the community. Building and nurturing relationships in the community will increase your business development opportunities. Consultation with a business development professional should be considered. During the

RubinBrown’s Contractor 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 Contractor Services Group frank.hogg@rubinbrown.com 314.290.3413

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

Mark Jansen, CPA - St. Louis Partner Contractor Services Group mark.jansen@rubinbrown.com 314.290.3208

Jim Massaro, CPA - Denver Partner Contractor Services Group jim.massaro@rubinbrown.com 303.952.1211

www.rubinbrown.com

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