Their Potential Impact on Valuing a Construction Contractor Construction claims may impact the value of a construction company. In this article, the author discusses the issues that arise and the methodologies that may impact the valuation. A construction claim is a demand made by the contractor to the owner for additional revenue for construction work performed on a construction project which is beyond the terms of the contract. Simply stated, a construction claim is a change order that has not been settled or negotiated between the owner and contractor. If the construction claim cannot be settled or negotiated, then most…
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In March, the federal government imposed a twenty-five percent tariff on imported steel and a ten percent tax on imported aluminum. The resulting increased costs will likely be passed on to the construction industry. General contractors typically increase their bid price to account for anticipated cost escalations. For those projects already under contract, however, the pending increases pose a dire threat to profitability. And a looming trade war could impact other materials widely used in the industry. The critical question for those bidding is how to anticipate how far prices will rise and when. To read the full article in…