Structurally Deficient Bridges Present Opportunity to Construction Professionals

The U.S. Department of Transportation (DOT) has released their 2017 U.S. deficient bridge report and analysis prepared by the American Road & Transportation Builders Association (ARTBA). The report inventories more than 55,000 structurally deficient U.S. bridges, 1,900 of which are located along the Interstate Highway System. Within the report, ARTBA’s Chief Economist, Dr. Alison Premo Black, notes “the inventory of structurally-deficient bridges has declined 0.5% since the 2015 report. At that pace, it would take more than two decades to replace or repair all of them.” The report has in-depth and state-specific information on structurally-deficient bridges, national bridge inventory totals and proposed bridge work by location. The full context of the report and its analysis can be found here.

This sweeping infrastructure initiative provides opportunities for business owners in many areas including bridge construction, painting, maintenance and several other related industries. The professionals at HBK CPAs & Consultants (HBK) can help navigate the potentially complicated process of working on governmental contracts by offering advice on how to:

  1. Acquire, analyze and organize key financial information
  2. Understand “true” contract costs and how to use them to assist in bid price determinations
  3. Comply with state and federal licensing requirements
  4. Improve working capital and help enhance bonding limits by offering directives for discussions with surety companies

For more information and further details about how the construction industry specialists at HBK can help your business, please contact either Michael Kapics at mkapics@hbkcpa.com or Nicholas Odille at nodille@hbkcpa.com.

About the Author(s)

Mike is a Principal in the Youngstown, Ohio office of HBK CPAs & Consultants and has been with the firm since 2001. He is the leader of the firm’s Construction Industry Group.

He has tax and auditing expertise in the industries of contracting, manufacturing, wholesale and retail.

In 2008, Mike received the designation of Certified Construction Industry Financial Professional (CCIFP) from the Institute of Certified Construction Industry Financial Professionals, Inc. (ICCIFP). ICCIFP is a not-for-profit corporation established to promote the highest standards of construction financial management through the credentialing of construction financial professionals. Mike works closely with dozens of construction clients helping them achieve their financial goals.

In addition to his CCIFP distinction, Mike is a member – of the Builders Association, serves as Treasurer of the Construction Accounting Network and is a member of the Ohio Contractor’s Association. He has been published in the national construction magazine “Breaking Ground” as a subject matter expert on Financial Perspective in an article titled “Give Your Workforce the Financial Tools to Manage a Successful Project” in 2019.

He attends several national construction conferences each year to always stay ahead of industry trends and regulatory changes. He is a very hands-on industry specialist. By way of example, he has personally identified more than $1M of tax credits for mechanical contractor clients.

During his career, Mike has gained expertise in accounting work related to Construction through many applications. Among his industry distinctions are:

  • Experience assisting clients with cash flow projections and financial statement projections. In one case, it lead to a contractor client obtaining more than $100M in a single contract bond.
  • Helping a contractor secure a line of credit with financial institution at seven times the level they had prior
  • Assistance negotiating a settlement of sales tax liability, which resulted in a reduction of more than $200,000 from the original assessment
  • Aiding a contractor client in claim negotiations resulting in more than $1M of additional revenue
  • Providing expert witness testimony on behalf of a contractor, resulting in a successful lost revenue claim
  • Helping develop a training program for the management team of a contracting firm, to improve internal communication and overall profitability

Hill, Barth & King LLC has prepared this material for informational purposes only. Any tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or under any state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Please do not hesitate to contact us if you have any questions regarding the matter.

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