🏗️ Industry Insights

You bid jobs down to the penny. Your financial structure leaks money by the bucket.

Construction firms overpay on workers' comp more than any other industry — typically 15-25% above what proper classification would cost. Combine that with missed equipment deductions and you're leaving six figures a year on the job site.

15-25%
What most contractors overpay on workers' comp from wrong class codes
$1.16M
Section 179 equipment deduction limit most contractors underuse (2026)
3 years
How long one bad EMR score follows your premiums

Based on typical client scenarios. Individual results vary depending on your specific situation.

The problems hiding in plain sight.

These are the issues we see most often with construction & trades businesses. Most owners don't know they have them.

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You're Paying Field Rates for Office Workers

Workers' comp is your #1 cost after labor — and most contractors are miscoded. The National Council on Compensation Insurance (NCCI) publishes class codes that vary wildly by job function. If your office manager is coded as a field worker, you're paying 5-10x the correct rate for that employee. This is the most common overpayment in construction and it compounds every renewal.

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You're Depreciating Equipment Over 5 Years When You Could Deduct It Now

Section 179 lets you deduct up to $1.16M in equipment purchases in year one. Bonus depreciation covers even more. The Tax Foundation reports that fewer than 40% of eligible small businesses take full advantage of accelerated depreciation. Most contractors take standard depreciation because nobody told them otherwise.

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Your Subcontractor Paperwork Is a Ticking Clock

IRS audits on subcontractor classification are increasing in construction. If your subs use your tools, follow your schedule, and work under your supervision — the IRS may reclassify them as employees. The penalties include back employment taxes, penalties, and interest. The Department of Labor's published enforcement data shows construction as the #1 target industry.

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Your Balance Sheet Is Capping Your Bonding Capacity

Bonding capacity is directly tied to your financial statements. The Surety & Fidelity Association of America publishes guidelines that underwriters follow. Poor entity structure, commingled personal and business finances, or inconsistent financials can cap your ability to bid on larger projects — even if you have the crew and experience.

Want to see what you're leaving on the table? A 30-minute Foundation Review built specifically for construction & trades.

Book Your Construction & Trades Review →

What construction & trades owners get wrong.

And what to do instead.

Not auditing workers' comp classification codes at every renewal +
Request your experience modification worksheet annually and compare classification codes against actual job descriptions. NCCI publishes the codes — your admin staff, estimators, and office workers should NOT be coded as field crew. Miscodes can persist for years and compound at every renewal.
Taking standard depreciation on equipment purchases instead of Section 179 +
Any equipment placed in service during the tax year qualifies — trucks, excavators, tools, even software. The IRS Section 179 deduction allows up to $1.16M in first-year deductions for 2026. Plan major purchases before year-end to maximize the benefit. This is one of the most straightforward tax strategies available to contractors.
Operating without a documented safety program +
A documented safety program directly impacts your Experience Modification Rate (EMR). OSHA and NCCI data consistently show that firms with written safety programs have 20-40% fewer claims. Lower EMR = lower premiums for three years. The ROI on a safety program is one of the best investments in construction.
Not verifying subcontractor insurance certificates before every job +
If a sub doesn't carry their own workers' comp, their injuries land on YOUR policy. This is settled law in most states. Verify certificates before every job — it takes two minutes and can save tens of thousands per incident.

Where the money actually is.

Opportunities we typically identify for construction & trades businesses — and coordinate with your tax and legal professionals to capture.

Workers' Comp Audit
15-25% savings
Correcting classification codes and optimizing your EMR — the most common overpayment in construction
Equipment Deductions
Up to $1.16M/year
Section 179 + bonus depreciation on purchases placed in service this year
Retirement Planning
$60-200K/year sheltered
Solo 401(k) or defined benefit plan for owner — published IRS contribution limits
Safety Program ROI
3-year premium reduction
Better EMR from documented safety programs reduces workers' comp for three consecutive years

What a Foundation Review actually looks like.

An anonymized engagement from our work with construction & trades businesses.

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Commercial General Contractor

$8.5M annual revenue

A 45-person GC had grown steadily but the founder — who personally guaranteed every bond and credit line — carried no life insurance, no disability coverage, and had a basic 401(k) with minimal employer contributions. If the founder couldn't work, the company couldn't bond new jobs and had no succession plan.

What the Foundation Review found
  • Key person insurance gap: the founder's death or disability would immediately jeopardize bonding capacity, existing contracts, and $8.5M in annual revenue — yet there was zero coverage in place
  • No funded buy-sell agreement with the operations manager who was being groomed as successor — verbal promises only
  • Basic 401(k) with 3% match was causing the company to lose experienced foremen to competitors offering better retirement benefits
  • Also identified: workers' comp class code errors on 12 employees (~$65K/year in overpaid premiums) and $340K in equipment eligible for Section 179 deduction
Result

The Foundation Review resulted in a key person life and disability package protecting the company's bonding capacity, a funded buy-sell agreement between the founder and successor (structured with life insurance through Ash Brokerage), and a redesigned retirement plan that improved employee retention. The workers' comp and tax items were flagged for their P&C broker and CPA respectively.

Details anonymized and modified. Individual results vary — your Foundation Review will be specific to your situation.

We've sat in your chair.

Not just advisors — operators.

Most financial advisors look at your business from the outside. Our team has actually been inside — as internal CFOs, management consultants, and business operators. We've built the financial models, managed the cash flow cycles, and navigated the entity structure decisions firsthand.

That means when we look at your situation, we're not guessing. We've seen the patterns from the operator's seat — and we know which moves actually move the needle.

Good Deals is an independent fiduciary. We don't work for an insurance company or a wirehouse. We work for you. No proprietary products, no sales quotas — just the best path forward for your specific situation.

  • CFA charterholder — one of the most rigorous credentials in finance
  • Internal CFO experience — we've managed P&Ls, cash flow, and entity structure from the inside
  • Management consulting background — financial modeling, growth strategy, and M&A advisory for businesses from startup to $50M+
  • Licensed insurance professionals — life, disability, and commercial coverage, not just referrals
  • Independent and fiduciary — legally required to act in your best interest
  • Austin, TX based — we know the local market, the tax landscape, and the business community

Ready to keep more of what you earn?

30-minute conversation built for construction & trades. No pressure. We'll look at your specific situation and identify the highest-leverage opportunities.

Book Your Construction & Trades Review → Get a Quick Quote →
How It All Connects

The concepts behind your financial strategy.

Every decision connects to others. Click a node to explore the ideas that drive better outcomes for construction & trades businesses.

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