10 Best Practices for Road Builders

In a presentation to our construction industry niche group, Robert Davidson presented his top 10 list of the most common causes of contractor failure as well as his 10 best practices for road builders. Based on 48 years of experience–providing audit, tax and consulting services to over 500 contractors since 1976–Robert has amassed a great deal of experience in the construction industry and shared some of his wisdom with BMSS. For the full presentation, please click here.

1. Stay focused on the financial health of the Company – set conservative benchmarks and balance sheet goals and use conservative financial reporting practices
2. Know your true job costs
3. Implement and Utilize Good Internal Control Systems
4. Manage Contract WIP Reporting – The WIP schedule is the #1 Financial Report
5. Focus on Cash Flow
6. Stay on Top of Bidding and Estimating Process
7. Take Care of Your People
8. Consider Independent Board of Directors and Peer Group Participation
9. Stay Alert for Acquisition Opportunities
10. Avoid Dumb Mistakes (Avoid “turnovers”)
11. Bonus Best Practice – Be Positive and Enthusiastic