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Tag: contractors

  • Federal government disrupts major NY infrastructure projects: What contractors should know | Long Island Business News

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    In Brief:

    As the federal government shutdown stretches on, New York’s construction sector is bracing for significant disruption. Approximately $18 billion in federal infrastructure funding is now frozen, impacting two of the city’s largest and most critical transit projects: The Hudson Tunnel reconstruction and the Second Avenue Subway extension. These high-profile transit projects represent billions in construction contracts and tens of thousands of jobs across the region.

     

    Hudson Tunnel project

    Part of the , this $17.2 billion initiative represents one of the most ambitious infrastructure undertakings in the Northeast. Having secured more than $11 billion through various federal grant programs, the project encompasses the construction of a new tunnel, along with the rehabilitation of the 115-year-old North River Tunnel, which was damaged during Superstorm Sandy. The rail link is considered vital to the Northeast Corridor’s economic , with approximately 200,000 commuters relying on it daily. The project is expected to create over 95,000 direct, indirect and induced jobs during construction while generating $19.6 billion in economic activity.

     

    Second Avenue Subway extension

    A long-awaited and needed expansion into East Harlem, this project promises to bring improved transit access to over 100,000 residents. The extension is expected to reduce overcrowding on the Lexington Avenue line by 22 percent during morning rush hours. With Phase 2 of the project costing an estimated $2 billion, construction had been ramping up with federal support until the shutdown paused reimbursements and furloughed key Department of Transportation staff.

    Economic and operational impacts of the shutdown

    It goes without saying that the funding freeze is expected to significantly impact New York-based infrastructure contractors, especially those facing delayed timelines and potential job losses. While the Metropolitan Transportation Authority () has a set state-sponsored budget in place, it still relies on federal grants. The freeze is anticipated to affect MTA operations and delay future bids, with uncertainty likely to ripple through the broader economy, particularly in sectors tied to public infrastructure.

     

    How impacted contractors can respond

    It’s been a turbulent year for the . Tariff uncertainties, volatile markets and fluctuating labor costs have prompted new strategies throughout 2025. Now, the adds another challenge to the mix. With billions in funding frozen and project timelines up in the air, contractors are rethinking their approach in several key areas:

     

    Strengthening financial management

    This level of uncertainty is prompting sharper financial oversight from contractors, as projects that impact financial results are now in question. In any economic climate, the fundamental “tried-and-true” construction financial management tools—cash flow forecasts and project budgets—are essential. These reports will help management identify peaks and valleys in cash flow across projects and the company as a whole, allowing for proactive planning rather than reactive fixes.

     

    Evaluating liquidity options

    Even with the consensus that the shutdown will eventually be resolved, a prolonged funding freeze would impact operational liquidity. As part of ongoing financial modeling, it’s essential to understand where cash is accessible. The obvious source is working capital lines of credit from banks. Although interest rates are beginning to creep lower, there is still a cost to that capital.

    Contractors should evaluate other potential cash sources, including short-term loans from ownership, liquidation of marketable securities or other readily tradable investments and negotiating advance payment from project owners. Some firms may also consider temporarily scaling back discretionary spending or postponing equipment purchases to preserve cash reserves.

     

    Maintaining communication with financial partners

    Whether the stakeholders are bonding agents, sureties, bankers or other financial parties, transparent communication regarding the shutdown’s potential impacts could prove critical in maintaining relationships and reinforcing confidence in management. Demonstrating how the business could be impacted and outlining the plan(s) to remediate and alleviate those risks will build support for any short-term help.

     

    What’s ahead for New York?

    City officials have not yet announced emergency funding measures, but the pressure is mounting. With New York’s transit system serving over 3 million riders daily, any prolonged disruption could have cascading effects on mobility, employment and urban development. Industry leaders are urging Congress to reach a swift resolution as every day of delay costs time, money and public trust.

    For now, the industry waits—but contractors with strong financial buffers and proactive communication strategies may be better positioned to weather the uncertainty.

     

    Carl Oliveri is partner and construction practice leader at Grassi, with more than 25 years of experience guiding construction executives on financial strategy, operations and market trends.


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    LIBN Staff

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  • Is it better to be an employee or self-employed? – MoneySense

    Is it better to be an employee or self-employed? – MoneySense

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    What factors determine employment status?

    The Canada Revenue Agency (CRA) uses an important distinction when evaluating a relationship between a worker and a business: the difference is between a contract for “services” and a “contract of service.”

    What is a contract for services?

    A contract for services is a business relationship, like when you hire a contractor to renovate your bathroom or a snow removal company to clear your driveway. Neither the general contractor nor the snowplow driver is your employee. They do not work for you. They provide work for you.

    What is a contract of services?

    If you own a restaurant and hire a cook, or you own a store and hire a cashier, this is a contract of service. You set the shifts and the terms of employment, so it’s a different type of relationship.

    How to determine if you are employed or self employed

    When in doubt about your employment status, the CRA considers six primary factors, Elza.

    1. Control: When the payer dictates when and how work is done, it’s more likely that the person being paid is an employee.
    2. Tools and equipment: An employer is more likely to provide equipment and tools to an employee compared to a self-employed contractor who provides their own.
    3. Subcontracting work or hiring assistants: An employee is unlikely to be permitted to subcontract their work or hire others, whereas a self-employed person can make decisions like this without permission.
    4. Financial risk: Employees typically do not have to pay for expenses to earn their income—or they are reimbursed when they do—whereas a self-employed person is responsible for their own expenses and business profitability.
    5. Responsibility for investment and management: A worker generally does not have to invest their own capital to earn their living, and they don’t typically have a discernible business presence.
    6. Opportunity for profit: An employee’s income may vary depending on their hours, bonus or commissions, but a worker cannot generally control their proceeds and expenses nor incur a loss, like a self-employed person.

    It’s also more likely that you’re an employee if you’re only providing services to a single payer. Someone who is self-employed tends to have multiple clients or customers.

    Should you incorporate if you’re self-employed?

    If you’re self-employed and run a business that has a significant amount of risk, Elza, you may want to consider incorporating. This can limit your liability.

    If you have business partners, incorporation can also be a more efficient way to involve shareholders or raise capital.

    One of the main tax advantages of incorporating is the ability to retain savings within the corporation. You may benefit from a corporate small business tax rate that’s around 40% lower than the top personal tax rate.

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    Jason Heath, CFP

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  • Do I need a GST or HST number? – MoneySense

    Do I need a GST or HST number? – MoneySense

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    Why registering for GST/HST pays off

    The other excellent reason to charge GST and HST is that it pays off in dollars and cents.

    One of the great advantages of being self-employed is that when you charge these taxes, you only give the government what you charged minus the GST or HST you pay on your deductible business expenses. 

    For freelance writers like us, this is the sales tax we pay on printer paper, internet service, professional development workshops and more. The government lets us in essence deduct the sales taxes we pay on deductible expenses from the sales taxes we charge our clients. We then pocket the difference. The amount we save each year is roughly enough to pay for a trip to Europe.

    HST quick method or detailed method?

    The good news is that we don’t have to add up every bit of GST and sales tax we pay on our expenses to take advantage of this. That’s because we use the “quick method” for our calculations. 

    The government gives you two choices for paying GST and PST/HST instalments: the “detailed method” and the “quick method.” With the quick method, you simply pay 3.6% of the 5% GST you collect. In the case of provinces with HST, it’s a percentage of the HST: so, in Ontario, you only pay 8.8% to the government from the 13% you collect. 

    Image by rawpixel.com on Freepik

    The advantage of the quick method is that it’s much less work. You must only add up how much sales tax you charge your clients or customers. My spouse and I use the quick method and find it easy to do our calculations with an Excel spreadsheet. There is no need to keep a detailed account of the sales tax you pay on all the pens, paper, printer cartridges and more you claim as deductible expenses. 

    There’s another bonus to using the quick method. Governments offer a credit of an additional 1% on the first $30,000 of gross revenue. So, for example, in Ontario you pay 7.8% (instead of 8.8%) of the 13% HST you collect for that amount and pocket the other 5.2%. However, if you use the quick method, you must add the credit to your total revenue when you file your income tax return.

    The detailed method involves more work, since you must add up the GST and PST/HST you paid on each of your expenses and subtract it from the taxes you collect to determine the amount you have to pay. But this calculation method is useful if your taxable expenses are proportionately high, amounting to roughly more than 50% of your income. The advantage of the detailed method is that you don’t have to add the amount you retain to your revenue when you file your income tax return. 

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    Julie Barlow

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  • How to save money on home renovations (even if you’re not handy) – MoneySense

    How to save money on home renovations (even if you’re not handy) – MoneySense

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    I’m living proof that you don’t necessarily need handyman skills to save money on a home renovation. Here are some strategies anyone can use, with recommendations from general contractor Vince Spitale of Kitchen and Bath Guys in Toronto. 

    Ask your contractor which tasks you can take on to cut costs

    If you’re willing to take on some logistical work or even general labour, your contractor can give you a to-do list that will help save money. Spitale says some clients are comfortable doing their own demolition—taking down old cabinets, for example—which saves his crew time and reduces costs. There are other simple tasks you can take on too, like prepping a work site by laying down drop sheets to protect floors. “Remember, if you are not doing this, someone else is—and that translates into dollars.”

    Even if you lack skills, there may still be jobs your family can handle themselves with clear instruction from a professional. Ask your contractor what you can take on yourself and what the savings will be; you may be pleasantly surprised. “On one occasion, we had to remove hardwood floors on the entire main floor of a house,” Spitale says, noting that pulling up boards, nails and staples can take hours. He suggested that the client spend a day tackling this job to cut costs. “He got a good set of knee pads and pliers and his two teenage sons, and they got to work!” 

    Keep lines of communication open with your contractor—especially about your budget

    Communication is a huge part of staying on budget, so make sure you hire a contractor who is reliable, communicative and budget-conscious. Besides interviewing them beforehand, look at customer feedback on HomeStars or Google reviews to determine if they’re reputable. “You want to make sure your contractor has a good understanding of where you need to be with spending,” Spitale says. “They should be able to anticipate any potential issues that could push the project over budget and, more importantly, explain them to you before the job starts.” 

    Once you find a good communicator, talk over your plan together. According to Spitale, overlooking necessary steps, materials and timing is what often causes renovation projects to go over budget. To avoid creeping renovation costs, make sure you understand what’s required from you at every stage of your project. Have your contractor provide you with a list of materials needed in each stage of the renovation, allowing you to get one step ahead. When materials are on-site and ready to go, it keeps the renovation moving along quickly and prevents costly delays. “If you are able to facilitate a lot of the legwork involved in a project, this can present significant savings,” Spitale says. 

    Be realistic with your budget, saving where you can but investing where it counts

    Home owners should be realistic about what “on budget” really means to them. According to Spitale, if you’re within 10% of your original target, you’re in decent shape. Essentially, if you planned to spend $10,000 and your project comes in at $9,000 or $11,000, consider yourself on track.

    Just like any other product, home renovation supplies are available at a wide variety of price points. When choosing materials like kitchen cabinets, tile, lighting or flooring, consider buying well-reviewed products from big-box stores instead of opting for more expensive custom or brand-name options. You don’t want to buy low-quality materials, but there are many well-made generic products that allow you to achieve a high-end look and durability for less. The same line of thinking applies to things like kitchen cabinetry, as you can cut the cost nearly in half if you opt for prefab over custom. As always, talk to your contractor, as they may be able to recommend specific products that meet your needs while allowing you to save money.

    And remember that there’s always the opportunity to tweak your space down the road. You may want a high-end chef’s range, but if it’s out of budget, consider a more affordable option and remember that you can always upgrade it later. 

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    Erin Pepler

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  • Hubstaff’s Global Freelancing Study Reveals Groundbreaking Data on Freelancing Industry’s Top 1%

    Hubstaff’s Global Freelancing Study Reveals Groundbreaking Data on Freelancing Industry’s Top 1%

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    Comprehensive study focuses on finding better clients, setting higher rates, and landing more gigs from 15000 freelancers

    Press Release
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    updated: Jul 11, 2017


    INDIANAPOLIS, Ind., July 11, 2017 (Newswire.com)
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     Hubstaff just released their first annual freelancing trends study. The study set out to provide insightful data on pay rates, work experiences, factors that help freelancers land gigs, signs a client relationship isn’t going to work out, and much more. Data was collected via Hubstaff Talent’s network of over 20,000 freelancers as well as interviews and surveys from more than 300 top-rated freelancers amongst nearly a dozen different industries.

    Most notable insights from the study include:

    “I’ve seen and read multiple freelance studies that are out there. Most of the studies talk about freelancing from a more higher-level perspective like where the industry is heading, how much money this industry contributes to the economy, etc. That’s fluff to me, as a freelancer. I wanted to get actionable insights on how the top 1% freelancers are finding better clients, charging higher rates and landing more gigs, so I can implement that advice today. And that’s what I did.”

    Madhav Bhandari, Hubstaff Talent

    Location plays a major role in average hourly rates: Freelancers in Great Britain command the highest average rates (more than $46 per hour), and those in the Philippines earn the lowest average hourly rates (less than $12 per hour).

    Highlighting your work on a business or personal website helps you charge more: Freelancers with websites who work 40 hours a week earn nearly $28,000 more annually than full-time freelancers without websites.

    Experience factors into the rates freelancers charge: Marketing industry freelancers with fewer than two years experience earn an average of $17 per hour, but those with more than ten years of experience earn an average of $52 per hour.

    When it comes to landing freelance gigs: Prospects that come through referrals were by far the most likely to convert to clients at 30%.

    When asked what signs to look for to identify bad clients: The number one response was clients that ask for too many revisions (40%). Asking for a discount is another bad sign (26%), as is requesting too many meetings (12%).

    “I’ve seen and read multiple freelance studies that are out there,” said the study coordinator and Hubstaff’s Growth Strategist, Madhav Bhandari. “Most of the studies talk about freelancing from a more higher-level perspective like where the industry is heading, how much money this industry contributes to the economy, etc. That’s fluff to me, as a freelancer. I wanted to get actionable insights on how the top 1% freelancers are finding better clients, charging higher rates and landing more gigs, so I can implement that advice today. And that’s what I did.”

    Hubstaff’s freelancing study contains eight sub-sections that cover a wide range of topics as well as an easy to share infographic that summarizes all the important findings.

    Here’s a short summary of what the study concluded from the data:

    • Freelancer’s rates vary wildly by amount of experience, location, and specialty, so there’s no real standard to refer to. It is important to set a rate that is reasonable for the services provided.
    • Having a place to promote and showcase work is critical. Freelancers with websites and developers with GitHub profiles make significantly more than those who don’t have websites. Additionally, freelancers are more likely to get jobs when clients research their background and qualifications thoroughly. Giving clients a place to research previous work, and a means to get in touch will likely lead to more gigs and more money.
    • An early agreement on rates is crucial. If a freelancer’s rates aren’t in line with a client’s budget, the chances of landing the gig are minuscule. Being transparent with rates is important, listing them on a website or third party portfolio can be helpful. This will also help early identification of clients who intend to ask for a discount, allowing freelancers to end those relationships before they begin.
    • Long-term and recurring projects are the most profitable. Efforts should be focused on finding clients seeking ongoing work. This helps reduce the waste associated with having to look for new clients and jobs. Additionally, long-term clients are more likely to show their appreciation by referring others. Prospects who come through referrals are most likely to convert to clients.

    To see further insights and view the study in its entirety, please visit here. For press queries, please send an email to madhav@hubstaff.com.

    About Hubstaff:

    Hubstaff was founded in 2012 by Dave Nevogt and Jared Brown, two entrepreneurs from Indianapolis, Indiana. They were using remote freelancers and wanted a better way to manage them. Their time tracking software is built by a small team spread across the globe and the company’s office space is virtual. Hubstaff is actively used by over 8,000 agencies, freelancers, website owners and virtual teams all over the world. Hubstaff Talent was launched in July 2016 as a way to connect businesses and freelancers – the website sets itself apart from the rest by being completely free, no fees and no markups.

    Source: Hubstaff

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