As a construction business owner, you’re on top of your project plans—but what about your succession plan?  A comprehensive succession plan is a critical part of any company’s business strategy, helping to ensure the continued success of your business even after you leave your role as owner.

Why You Need a Comprehensive Succession Plan

A succession plan isn’t merely a piece of paper stating your chosen successor(s). A well-structured succession plan takes several years to develop and may change over time depending on the needs of your business and its stakeholders. It’s never too early to get started on a succession plan. You should begin planning for future transitions long before you expect to retire or leave your position. Life is unpredictable, and you never know when circumstances may demand a change of leadership. In the case of an unexpected event such as illness, injury, or even death, you’ll want to ensure that the management of your business is left in good hands.

When building your succession plan, consider what positions are critical to the operation of your business and identify high-potential employees as possible candidates for succession. A vital factor in developing future leaders within your company is a culture of constant training and mentorship. It is in your best interest to provide frequent, high-quality training opportunities and conduct regular performance reviews of your employees. Experienced construction professionals possess a wealth of hands-on experience, industry knowledge, and valuable skills. Mentorship programs ensure that this knowledge is passed down to the next generation of workers, rather than being lost when experienced employees leave or retire.

Not only does a detailed succession plan provide a blueprint for the future of your company, but it also earns the confidence of your employees, investors, clients, and other stakeholders by assuring them that a plan is in place for the inevitable transition of leadership. As such, it’s advisable to communicate your plan, as well as any changes or updates, to company stakeholders. The plan should be regularly reviewed and adjusted if necessary to ensure alignment with the business’s current goals and needs.

The Benefits of Buy-Sell Agreements

One question that you will face when developing a succession plan is how company ownership will be transferred when the time comes. One option for transferring ownership is through a buy-sell agreement. Buy-sell agreements are typically implemented by companies with multiple owners to guarantee business continuity in the event that one owner leaves the business for reasons such as retirement, voluntary exit, disability, or death. Buy-sell agreements help to protect the business by allowing a smooth transition of ownership, preventing owners from selling interests to outside parties, providing a method for assessing the value of company interests, and avoiding tax consequences of transferring ownership.

There are two main types of buy-sell agreements: cross-purchase agreements and entity-purchase (redemption) agreements. Under a cross-purchase agreement, the interests of the departing owner are purchased by the remaining owners. In the event of an owner’s death, tax-free life insurance policies (taken out by all owners on each other) are often used to fund this purchase. Under an entity-purchase agreement, the business entity itself purchases the interests of the departing owner, also commonly using tax-free life insurance benefits to fund the purchase. The establishment of buy-sell agreements is merely one component of a comprehensive business succession plan.

Set Your Business Up for Success

Investing the time and effort to formulate a succession plan early on reduces the risk of disruption and difficulties for your business down the road. It’s important to work with a team of trusted advisors throughout this process to ensure the long-term success of your succession plan and your business. RBT CPAs’ business advisory services experts are available to assist you with creating and reviewing your succession plan and buy-sell agreement. We are also here to support all of your accounting, tax, and audit needs. For more information, don’t hesitate to give us a call and find out how we can be Remarkably Better Together.

A bomb cyclone hits leaving snowfall that’s measured in feet instead of inches, bringing down powerlines and trees that will keep area businesses closed for days and possibly weeks.

A fire at a nearby building creates hazardous conditions for the surrounding area, resulting in officials making nearby offices off-limits until safety can be assured.

A severe hurricane hits. The roof of your office building is torn off and everything inside is destroyed.  Work conducted in that building is stalled for months.

Severe weather and fire events are occurring with greater frequency. While you have commercial property insurance to cover physical assets, what about income you lose and expenses you must continue to pay should your business temporarily shut down?  That’s where business interruption insurance comes in.

Business interruption insurance replaces financial losses and expenses you must continue to pay during a shutdown related to a covered weather or fire event. So, any income you would have earned had the event not occurred plus any expenses you must continue to pay while your business is temporarily shut down are replaced. This helps protect your business’:

• Cash flow. Business interruption insurance replaces the income your business would have earned had the event not occurred, ensuring cash continues to flow into your business even if you’re temporarily closed.
• Working capital and equity. Rather than seeing your assets shrink and debts increase due to expenses you would still have to pay during a temporary closure (i.e., payroll, mortgage, taxes, loan payments, temporary workplace expenses and more), business interruption insurance covers these expenses. As a result, your working capital, short-term business health, and solvency are protected.
• By providing coverage to protect revenue and cover expenses, your business has the help it needs to protect profits during a shutdown and more quickly return to normal once a shutdown has ended.
• During a temporary shutdown, business expenses may increase to cover costs associated with an interim workspace (i.e., rent). Rather than seeing your cash on hand going to cover additional expenses, business interruption insurance can protect it by covering costs associated with having to open a temporary work location.
• Maintaining cash flow, working capital, and equity plays into the formula to determine your bonding rating, which can impact your ability to bid on and secure future work.

Anything not covered by your business interruption insurance, as well as the premium you pay for that coverage, are deductible on your income statement. What’s more, depending on your business’ structure, a business loss, if incurred, can be carried forward into future years if not used up in the current year.

In addition to the financial protections business interruption insurance affords, it can also help with employee retention and productivity by covering payroll during a temporary closure.  Considering today’s challenges recruiting and retaining talent, keeping payroll going during a shutdown ensures your business will have the staff needed to ramp up productivity as soon as the shutdown is over.

Finally, extreme weather or fire events usually result in more contracting jobs following the event. By having business interruption insurance, you not only keep your business running, but also equip it to take on additional work, and that benefits everyone.

More opportunities to take enhanced deductions under 179D are here. Make sure you understand changes and what you need to do – in terms of prevailing wages, apprenticeships, and recordkeeping – to maximize deductions.

Key changes now in effect include:

• Minimum energy savings required has been reduced from 50% to 25%, based on the ASHRAE 90.1 standard in effect four years prior to the building’s placed-in-service date.
• When prevailing wage and apprenticeship requirements are met and a building reduces annual energy and power costs by at least 25%, the deduction is $2.50/square foot. For each additional percentage that annual energy and power costs are reduced, the deduction increases by $.10, up to $5.00/square foot. (That’s up from $1.88/square foot in 2022.)
• The maximum deduction is available every three years for a commercial building; four years for a government, instrumentality, not-for-profit or Tribal government building. (In the past, it could only be taken once.)
• In addition to federal, state, and local municipal building owners being able to allocate 179D deductions to a designer or multiple designers (a.k.a. the person who creates the installation of energy-efficient commercial building property technical specifications), the same now holds true for tribal governments and any tax-exempt organization investing in energy-efficient property, including museums, religious buildings, hospitals, non-profit schools, and university-owned buildings.
• The interim lighting rule and partial qualification rules no longer apply.

Prevailing wage and apprenticeship requirements established by the Inflation Reduction Act to qualify for green tax breaks took effect for construction or installation that began on or after January 29, 2023. On November 30, 2022, the IRS issued a notice with additional guidance clarifying requirements.

When it comes to prevailing wage, according to the DOL, laborers and mechanics must be paid the applicable prevailing wage for all hours performing construction, and in some cases alterations and repairs, on the site of a qualified facility. A prevailing wage includes the basic hourly wage rate and fringe benefit rate for each class of laborers and mechanics, for each type of construction, in a defined geographic area. Prevailing wages are determined by the Secretary of Labor and are posted on http://www.sam.gov.

As for apprenticeship requirements, as noted on Apprenticeship.gov, apprenticeship requirements are: “(1) a taxpayer must ensure that a certain number of labor hours of construction, alteration, or repair work, including work performed by any contractor or subcontractor, be performed by qualified apprentices (labor hour requirement), expressed as a percentage of total labor hours of construction, alteration, and repair work, subject to any applicable requirement for the ratio of apprentices to journeyworkers (ratio requirement); and (2) the taxpayer and any contractors and subcontractors who employ 4 or more individuals to perform construction, alteration, or repair work employ at least one qualified apprentice to perform such work (participation requirement).”

For both prevailing wage and apprenticeships, there are recordkeeping requirements. For complete details, including FAQs, see IRS Notice 2022-61, and watch for additional information in the months ahead, as the Treasury Department and IRS will likely issue additional guidance.

In the meantime, RBT CPA accounting, tax and advisory services professionals are available to help ensure you maximize this opportunity to create energy-friendly buildings and receive enhanced tax deductions. We’ve been supporting construction companies in and around the Hudson Valley for over 50 years and believe we succeed when we help you succeed. To learn more, contact one of our offices today.

Like many states, New York has used the National Council on Compensation Insurance (NCCI) to determine the experience modifier (Mod) for calculating Workers’ Compensation (WC) premiums. After careful evaluation, the New York Compensation Insurance Rating Board (NYCIRB) decided to create its own rating plan and to withdraw from the NCCI interstate rating plan effective October 1. Overall, the NYCIRB rating plan gives employers more incentive (a.k.a., lower WC premiums) to focus on safety and reduce workplace injuries.

The NYCIRB and your insurance company will determine your Mod based on several factors and formulas.

Your business will continue to be assigned a four-digit classification code, which is used to group similar employers. However, under the NYCIRB rating plan, six classifications are being eliminated and integrated into other codes.

To start, the expected loss amount or total anticipated loss during an experience period (the timeframe that the policies being used to determine the Mod were in effect) will be determined. It is calculated for each classification using this formula:

Expected Loss Rate (ELR) X payroll)/100

Then, the results for all classifications are added together to calculate expected losses.

Next, a split point is determined. The split point divides losses for each claim into primary and excess components using a dollar value. Split points vary based on expected losses during an experience period for each classification. They range from $1,000 for the smallest risks to $170,000 for the largest.

The split point is used to determine an employer’s corresponding D-ratio, which is assigned based on the ratio of primary losses to expected losses for each class and risk size.

• Expected Primary Losses = expected losses for the classification X D-Ratio
• Expected Excess Losses = expected loses – expected primary losses
• Actual Primary Losses = reported losses limited by the split point value

Finally, the new modifier (based on experience rather than merit) is calculated:

Mod = (Actual Primary Losses + Expected Excess Losses)/Expected Losses

There’s one more thing that will happen: a new capping methodology which protects against overly harsh Mods will be applied. For one claim, the maximum Mod is 1.12; for 2 claims, the max is 1.4; for 3 claims, the max is 1.75; and for four or more claims, the max is 2 + .000003 X expected losses. For the first year (October 1, 2022 through September 30, 2023), if a Mod under the new plan is more than what it would have been under the prior formula using updated experience by more than .30, the Mod will be capped at the Mod resulting from the prior formula plus .30.

You can find more details in the NYCIRB Experience Rating Plan Manual. For change highlights, including an example and updated rating worksheet, refer to the NYCIRB’s Changes to the Experience Rating Program Explained pamphlet. You may also want to check out the Mod Estimator tool on the NYCIRB’s website and this video explaining the new formula.

It’s definitely a lot to take in but the good news is insurance companies will be doing the calculations. We just want to make sure you’re aware of them because they may result in a decrease (or increase) to your WC premiums come October 1 and give you another reason to focus on your workplace safety efforts.

If you have any questions about this or any accounting, tax, or auditing topic, please don’t hesitate to reach out to RBT CPAs.

“It was the best of times. It was the worst of times.” It was as if Charles Dickens was writing about the construction industry in 2022 when he penned these infamous words.

On one hand, the industry is looking at its single biggest cash infusion of all time. With the American Rescue Plan Act and Infrastructure Investment and Jobs Act, many construction projects will be kicking off in 2022. On the other hand, persistent labor shortages, supply chain bottlenecks, skyrocketing materials prices with no expectation of stabilizing anytime soon, fuel cost increases, inflation, and other challenges are plaguing the industry. So, what’s a construction firm to do? Start by focusing on the top one or two challenges.

The 2022 Association of General Contractors (AGC) Survey of providers in the Northeast and nationally shows the pandemic’s top impact on projects to be:

1. Costs are higher than anticipated.
2. Projects are taking longer than expected.

While those findings are probably no surprise, we hope some research we’ve done introduces you to one or two new ways to address cost and time challenges. It’s important to note that fixes for one challenge – time or cost – in many cases has a positive impact on the other; they are not mutually exclusive. With that in mind, here are some budget and scheduling tips:

• Be smart when developing a budget. The 2022 AGC survey found 62% of respondents were putting higher prices in bids and contracts. So, consider including a 5% to 10%
• Be realistic about scheduling. According to the 2022 AGC survey, 32% of respondents in the Northeast are putting longer completion times into their schedules. Create a master schedule, break it down into phases and then into tasks. Remember to include time for everything from paperwork to permits and inspections. Include a start and end date for each task and confirm you’ll have the equipment, materials, and staff to meet timelines. Consider what can occur concurrently and what needs to happen sequentially. Add 10% for unexpected issues and delays. Make sure your contract allows for time extension requests in certain circumstances.
• Get to know the details and plan accordingly. Know your project specs inside and out. Verify property boundaries and determine where anything underground is – pipes, septic, water, gas, electric. Draw a site layout to show where everything will go, including material, equipment, trailer, break areas, employee entrances, etc., so you can identify and fix potential issues before a project gets under way. Make sure insurance is up to date.
• Create a contingency plan. Expect and plan for the unexpected. Work with your team to identify potential risks and contingencies (i.e., plan for overtime if project is running behind; weather delays may warrant extra equipment and staff). Then, develop a risk management plan.
• Make safety a non-negotiable priority. Accidents and potential safety hazards can hurt budgets and timelines, not to mention businesses and reputations. Make sure your team and subcontractors know your safety expectations. Review your safety plan. Reinforce its importance daily. Address issues before they escalate. Make sure everyone knows how to escalate an issue or concern.
• Staff up. Some anticipate the labor shortage may pose even bigger challenges than what’s going on with supply chains and materials. So, focus on staffing and building relationships and backup relationships. Evaluate your benefits and pay. Decide whether it’s time to invest in upskilling. Reach out to community colleges and technical institutes to build a pipeline of potential talent.
• Work as a team. Make sure you have a full lineup with all positions covered – from supervisors to safety managers, expeditors, and more. Officially kick-off each project. Have your team and subcontractors review, give input, and sign off on plans. Hold weekly team meetings and clarify your expectations about communicating potential delays or risks. Make sure you listen to what your team members have to say.
• Manage your customer. Investing more time up front walking your customer through the ins and outs of the project can save you time and money later. Before starting a project, get your customer’s sign off on all materials and costs. Also make sure your customer understands how scope changes can impact time and costs. Set a cut-off date for customer changes and stick to it.
• Manage your project every day. Monitor and track your timeline and budget with daily reports. Pay attention to the details. Watch for red flags.
• Shop smart. If you’re a small organization competing against big ones, look to level the purchasing field with a group purchasing organization. Consider alternative materials that may also be less labor intensive. (For example, synthetic roofing materials may require less labor and equipment.) If possible, build material reserves.
• Use technology. Software can help you streamline and better manage each part of the process, from project planning to payment tracking. Use construction management software for scheduling, organizing and storing documents, and more. Consider the role digital and other technologies can play in saving time and money. Drones, wearable sensors, self-driving vehicles, and more are predicted to have huge impacts on productivity and value.

On every project, it’s a good idea to consult with your legal and financial advisors to mitigate risks. RBT CPAs is proud to serve construction businesses throughout the Hudson Valley and beyond. For financial and tax advice, give us a call.

Over the next five years, the Federal government will invest $1.2 trillion to overhaul and upgrade aging roads, bridges, railways and railroads, airports, water systems, broadband, the electricity grid, and a lot more. What can you do now to prepare to ensure you and your firm are ready to take advantage of this once-in-a-lifetime building opportunity?

Get Acquainted with the New Law

What’s included in the Infrastructure Law and how will that impact New York State and the Hudson Valley? Gain insights from our last article, “Hudson Valley Construction: Get Ready to Get Building.” [LINK]  You’ll want to pay attention because over $65 billion is already heading out the door so states and local governments can begin driving progress this year.  In 2022:

• S. Department of Transportation (USDOT)/Federal Highway Administration (FHWA) apportioned $52 billion to states for road and bridge repairs;
• Environmental Protection Agency (EPA) outlined $7.4 billion for states to spend on water infrastructure and to replace lead pipes;
• USDOT/Federal Aviation Administration (FAA) announced $3 billion to modernize 3,075 airports nationwide;
• EPA announced $1 billion in funding to clean up 49 hazardous Superfund sites in 24 states;
• USDOT awarded $230 million in Port Infrastructure Development Program Grants to modernize more than 30 port sites nationwide; and
• Each state can apply for $100 million in grants for highspeed internet, as well as orphan wells and mine remediation.

Keep an Eye on the Governor’s Press Room

Governors are being encouraged to prepare by appointing staff to manage the flow of funds to each state; consulting with Tribal leaders, county officials, civil rights and territorial leaders for input; identifying how American Rescue Plan (ARP) funds can help states prepare to maximize Infrastructure Law funds (i.e., use ARP funding to train workers to build the infrastructure; rehire public sector workers to manage funds; and start water, sewer and broadband projects to complement infrastructure law investments); contacting the State Department of Transportation for information on accessing highway and bridge formula funding; and identifying priorities suited for competitive grand funding programs.

So, staying in the know about what’s going on in Albany will also give you some insight on where to focus your efforts. A good place to start may be with daily visits to Governor Hochul’s online press room, where you can learn about new funds and plans as soon as they become available. (Case and point: Today, as this article was being written, a press release was issued announcing $76.4 million in funding for 38 projects to renew and modernize New York’s freight rail infrastructure.)

Take a Glimpse at the White House’s Guidebook

On January 31, the White House issued a guidebook at build.gov to help constituents learn what to apply for, contacts, and how to get ready to rebuild. The White House says the goal of the guidebook released Monday is to ensure that all communities have the details on how to qualify for funding, no matter their size or politics. Don’t be fooled by the 465 pages – it’s very user-friendly:

• For each major category, there’s a funding overview, action items to get ready, and resources for information and assistance.
• For each program within a category, there’s a one-page summary with the funding amount, period of availability, funding mechanism, whether it’s new, recipient description, eligible uses, and next milestone.
• A data file is also available to simplify sorting programs by agency, funding amount, eligibility, and more.
• Updates on deadlines and details will be issued in future versions of the guidebook.

In turn, the White House is encouraging regions and local governments to develop their own guides to help every community learn about and access funds. This is something you’ll want to keep on your radar.

Prepare, Plan and Get Ready to Bid

For those in the construction industry, it’s a good time to become acquainted with the White House guidebook; raise your hand and let government representatives know if there are particular areas of interest to you; examine staffing and training needs for your organization; consider whether you should be partnering with other firms; and prepare for all things accounting-, tax- and audit-related that may arise. Your partners at RBT CPAs are available to help you chart your financial course so you can maximize Infrastructure Law opportunities. Find out how – contact us today.

Sources: Build.Gov, Times Union, National Law Review, Forbes, ThomasNet, News 12, Brookings.Edu

2022 didn’t get off to a great start, with yet another COVID surge in year three of the pandemic, which continues to impact everything from health care to supply chains. It’s not easy finding a silver lining, but the Bipartisan Infrastructure Bill signed into law last November offers more than a glimmer of hope nationally, for New York State, and in the Hudson Valley – especially for those in the construction industry.

At its essence, the law moves beyond the pandemic to focus on building a stronger, more competitive country for generations to come. Now is the time to get acquainted with it, so you’re prepared to make the most of this once in a lifetime investment in the Hudson Valley’s infrastructure and future.

What the Infrastructure Law Means to the U.S.

The $1.2 trillion law has money for everything from roads, bridges, railways, and highways to clean water, a stronger power grid, internet, climate change, and more. It includes 375 programs, of which 125 are new. Of the $1.2 trillion budget, $550 billion is new spending. There’s also $650 billion in previously authorized funding for roads and other infrastructure. About 60% of funds will be issued through formulas; the balance will be available through competitive applications.

What the Infrastructure Law Means to New York State

According to a White House Infrastructure Investment and Jobs Act State Fact Sheet for the state, over five years New York can expect to receive funds to:

• Repair and rebuild roads and bridges. With a focus on climate change mitigation, equity, and safety for all – including cyclists, pedestrians, and low-income communities, New York is slated to receive $11.6 billion for federal highway programs and $1.9 billion for bridge repairs and replacements based on formula funding alone. The state can also compete for $12.5 billion through the Bridge Investment Program and almost $16 billion for major projects delivering substantial economic benefits to communities.
• Improve healthy, sustainable transportation options. From formula funding, New York may receive $9.8 billion to improve public transportation.
• Build EV chargers for long distance travel and convenience. $175 million will be provided via formula funding to expand the EV charging network in the state and there will be the opportunity to compete for $2.5 billion in grant funding.
• Connect every New Yorker to reliable, high-speed internet. New York will receive a minimum of $100 million to help provide broadband coverage across the state. This includes providing internet service to more than 185,000 New Yorkers who currently lack access and helping low-income families afford internet service.
• Prepare for the impacts of climate change, cyberattacks, and extreme weather. Based on historical formula funding, New York may receive $34 million to protect against wildfires; $28 million to protect against cyberattacks; and a $3.5 billion national investment in weatherization which will reduce energy costs.
• Deliver clean drinking water to every New Yorker and get rid of lead service lines and pipes. Based on the traditional state revolving fund formula, New York may receive $2.6 billion to improve water infrastructure and ensure clean, safe drinking water for all communities. (In January, Governor Hochul announced $66 million in projects to improve drinking water and water infrastructure.)
• Upgrade airports for the 21^st New York will receive approximately $685 million for infrastructure development at airports.

What the Infrastructure Law Means to the Hudson Valley

Some of what’s expected to reach our local communities includes $12 million for Stewart International Airport; $1 million to Columbia County airport; and $800,000 to Orange County Airport and the Hudson Valley Regional Airport. Villages like Newburgh will likely benefit from state monies earmarked to replace lead pipes and service lines and combat contaminants. Commuters and towns will benefit if Metro-North receives some of the $11 billion going to the Metropolitan Transit Authority. Plus, there are eight bridges in the Hudson Valley slated for upgrades (with funding from Bridge NY and the new law). That’s just to start.

U.S. Senator Charles E Schumer’s office indicated, “The deal is the largest federal investment in history for upstate airports, water, transit, broadband, trains, bridges and roads.”

U.S. Representative Sean Maloney added, “Every penny spent is about infrastructure of course, but it’s really about growing our economy and jobs.”

RBT CPAs is tracking developments related to the Infrastructure Law so we can help clients in construction and government maximize forthcoming opportunities. If you have any questions or need advice to prepare for all things financial related to the law, contact your partners at RBT CPAs – we’re always here to help.

Sources: Build.Gov, Times Union, National Law Review, Forbes, ThomasNet, News 12, Brookings.Edu

The United States has historically underinvested in infrastructure facilities and systems, leaving businesses that build and supply products with unfulfilled promises.

Yet, infrastructure is essential, supporting the operation of society and the economy. Construction occupations engage in creative processes requiring building and repairing public and private physical structures. Further, the construction industry builds on opportunity. In fact, the construction industry is projected to grow 6% between 2020-2030, adding about 400,000 new jobs. Contractors are upbeat about sales and employment prospects as President Biden is investing in opportunities that will create a more robust equitable economy and higher quality of life for future generations. 2022 promises to have a positive impact on the construction industry and it is critical to keep informed.

The Biden Administration’s Build Back Better (BBBA) legislation intends to unite Americans around “things we can depend on,” by rebuilding a modern infrastructure that will have an exponential impact, empowering Americans. The BBBA is a comprehensive three-part transformative legislative framework:  part one, The American Rescue Plan, was signed into law on March 2021 as a Covid-19 relief package; however, the second and third parts of the proposed legislation, called the American Jobs Plan (AJP) and the American Families Plan (AFP), were forced into extensive negotiations, resulting in the bipartisan Infrastructure Investment and Jobs Act (IIJA), signed by Congress on November 15, 2021.

According to Grist, The IIJA was a major victory, indicating both political parties agreed to the critical need to invest $550 billion in new spending over the course of five years into America’s roads, bridges, tunnels, airports, ports, railways, transit, broadband communications and other physical infrastructure badly in need of an update as well as include a major backlog of projects and repair work deferred by the pandemic. The majority of the funding in IIJA goes toward traditional infrastructure. Here are a few graphics to demonstrate:  Funding Breakdown, Proposal vs Plan Comparison, Presidential Plan Comparison

Thomas Net explains, allotments were calculated per state and New York will get some of the largest funding.

The funds go directly through government agencies from the federal to the local level, giving them authority to distribute and oversee the money by giving grants; simultaneously designing the dozens of new programs outlined in the act and hiring more people and purchasing more technology to prepare. Vox clarifies, “The Department of Transportation has jurisdiction over the bulk of the funds and will oversee money for highways, public transit, and rail. The Environmental Protection Agency will oversee funding for drinking water and wastewater projects, including the replacement of lead pipes. The Department of Commerce will oversee funding for broadband deployment. The Department of Energy will oversee funding for the electric grid and clean energy investments. And the Department of Interior will oversee water management and natural disaster resilience.” While the cash flow is coming, investment choices are challenging. States, regions, and local governments want to know more details about how to equitably distribute and target the funds to construction projects in most need.  Biden remarked in a speech given on January 14, 2022, “We’ve got a lot of work to do…. We are going to get it done…, and I want every penny watched.”

The construction industry needs to keep a close eye on the years ahead.  Here are tips to consider:

• Prepare to be either a government contractor or a supplier to one
• Start with existing programs, like fixing roads or replacing water pipes because government contracts will be available sooner
• Then, plan for system expansions like additions to the broadband internet infrastructure
• Go for new programs last, especially competitive grant programs because they will need to be set up from scratch
• Retain and recruit skilled workers with premium pay and benefits
• Provide workplace incentives for current and future employees
• Consider acquisitions, partnerships, and joint ventures to position your company
• Tap into tax credits to lower the upfront costs
• Purchase goods primarily manufactured in the U.S. for an additional ten percent tax credit
• Invest in technology/technological innovations to streamline all aspects of the project
• Keep up with The White House’s Fact Sheet Releases. HERE is the direct link to New York.

Biden stated, “There is nothing beyond our capacity when we work together.”  Construction occupations demand teamwork in the broadest sense.  RBT hopes businesses can envision the future with pride as they look at what can be built together.  If you’d like to know more, our dedicated team is here to help develop a personalized long-term strategy for you.  Additionally, if you would like to submit topic ideas for future articles our team produces, please feel free to contact us at TLideas@rbtcpas.com.

SOURCES: lohud, usgbc, Congress, White House, E.D.A., CE, Grist, CNN, Vox, Thomas Net, ABC, Vox, Zepth

If you do business in the city, you need to be aware of the latest major expansion to New York’s “Key to NYC” program. Just last week, Mayor Bill de Blasio announced the first-in-the-nation vaccine mandate for private-sector workers which will take effect on December 27th, and will apply to roughly 184,000 businesses. This substantial change will surely impact contractors with upcoming jobs in the city.

“New York City will not give a single inch in the fight against COVID-19. Vaccination is the way out of this pandemic, and these are bold, first-in-the-nation measures to encourage New Yorkers to keep themselves and their communities safe,” said Mayor Bill de Blasio.

Currently, only municipal employees are subject to a COVID-19 inoculation requirement, which took effect for most city workers in late October and prompted backlash from members of the FDNY, NYPD, and the city Department of Education. In response, a rep for Mayor-elect Eric Adams, who will take office Jan. 1, did not take a position on de Blasio’s controversial measure.

“The mayor-elect will evaluate this mandate and other COVID strategies when he is in office and make determinations based on science, efficacy and the advice of health professionals,” said spokesman Evan Thies.

Acceptable proof of vaccination includes a CDC-issued vaccination card, the New York State Excelsior Pass, the Clear Health Pass, and the NYC COVID Safe App. The city will issue additional enforcement and reasonable accommodation guidance on December 15th, along with additional resources to support small businesses with implementation. This mandate expansion follows recently announced vaccination mandates for City employees, childcare providers, and non-public school employees. Ninety-four percent of the City workforce is vaccinated.

As recently as December 10, Governor Kathy Hochul announced that employees and patrons of all New York businesses and worksites must wear a mask indoors effective December 13 unless the business implements a vaccine requirement. This new measure was announced to address a rise in COVID-19 cases and hospitalizations and aims to curb outbreaks during the holiday season when more time is spent indoors and with crowds. Alternatively, employers can implement a vaccine mandate, requiring that all employees and customers present proof of vaccination in order to enter. Businesses that violate this measure face civil and criminal penalties, including fines of up to $1,000 per violation. The mandate will remain in effect through January 15, at which time the state will re-evaluate the conditions.

Our team is carefully tracking these developments and will continue to keep our clients informed through our upcoming thought leadership content. Questions or concerns? Our professional RBT team that specializes in construction clients is here to help, contact us today. Additionally, if you would like to submit feedback or topic ideas for future articles our team produces, please feel free to contact us at TLideas@rbtcpas.com.

Sources: NYC.GOV, Governor.NY.GOV