The construction sector has seen solid growth this year and will very likely also experience such growth in the years to come, especially in the Southwest Netherlands. Perhaps even more importantly, the sector is changing dramatically. Supply chain integration and partnerships are on the rise. Sustainability is an important issue which must be addressed intensively now. Due to competitive pressures and higher purchasing prices, margins are being squeezed. Moreover, builders are facing more and more project risks, and obtaining project and other financing is difficult.
All of these and other trends are making operations in your construction business complex. This requires specific support and advice in many areas, such as proper management information and current insight into, for instance, solvency ratios, advice on hiring and other personnel matters, and assistance in obtaining financing. In short, you need personalized, customized construction accountancy services.
Construction companies subject to statutory audits clearly must have accountants who are knowledgeable about the sector. Partly because of the increasing complexity here, small and medium-sized companies which are not subject to statutory audits nonetheless also need such accountants. For this reason, DRV has a Construction Sector Group, in which specialized knowledge about accountancy, tax advice, corporate finance, performance improvement, personnel and grants has been pooled.
Although the construction sector is growing, there are concerns about continuity. The sector is changing dramatically, requiring well reasoned strategic choices, if only with respect to supply chain integration and new types of partnerships. Likewise, the provision of information and degree of computerization at many companies could be greatly improved. As regards these issues, your accountant can work with DRV Performance Improvement’s advisors, who are also represented in the Construction Sector Group. DRV Corporate Finance’s specialists can be called in to help with company valuations, business acquisitions and financing arrangements. If family assets are involved, Zantboer & Partners’ tax advisors and mediators can be a significant addition to the team.
Rising margin pressures, the importance of adequate solvency in tendering processes and the difficulty in obtaining project and other financing make it necessary to always have up to date, correct management information. This is definitely true in the construction industry. DRV Pro is an important tool here. With DRV Pro, we ensure that you have up to date, sufficient management information based on very efficient record keeping. In line with your specific needs, we combine financial and operational data into information on conveniently arranged dashboards. You get information about, for example, solvency, labour costs, budget deviations, differences between projects, and benchmarks. As part of DRV Pro, we look at your dashboard, too, and point out matters which merit your attention. This is included in the fixed monthly amount. What’s more, DRV Pro makes compiling the right information fast for third parties (say, bankers) easier.
Several Dutch laws apply which have a huge effect on operations in the construction industry and which entail financial risks if they are not properly complied with. These laws include the Wages and Salaries Tax and National Insurance Contributions (Liability of Subcontractors) Act, the Labour Market Fraud (Bogus Schemes) Act and the Assessment of Employment Relationships (Deregulation) Act. Traditionally, collective bargaining agreements have also been fiercely negotiated in the construction sector, with compliance with the provisions of these agreements being monitored closely.
DRV Personnel’s advisors are well versed in construction legislation and understand its impact and consequences for the sector. We offer a wide range of services, from taking care of the payroll administration to helping formulate HR policy and devising a performance assessment system.