2022 Marcum National Construction Survey

81%

79% Respondents expect the ability to obtain financing to remain the same or become easier Respondents sign personal guarantee/ indemnity agreements 60% Respondents said general and administrative overhead expenses were higher than the previous year 55% Respondents are planning for general and administrative budget increases in 2022

BONDING For respondents who act as contractors, personal indemnity agreements remain a major consideration when it comes to getting capital for their business. A combined 79% sign personal indemnity agreements with the surety, personal guarantee agreements with banks, or both surety and bank personal guarantee agreements. This tends to only affect smaller and mid- sized companies, as larger ones can get personal guarantee requirements waived. If you’re struggling to find favorable financing options to grow your company, contact Marcum for expert advice. EXPENSES Although construction activity is returning to pre- pandemic levels, the costs of doing business are skyrocketing, with breathtaking price increases for certain materials, rising labor costs, and general inflation taking a toll on the bottom line. Sixty percent of respondents said general and administrative (G&A) overhead expenses were higher over the past year, and 55% are budgeting for further increases in 2022. In our 2021 survey, only 33% of respondents reported increased spending on G&A expenses. The jump reflects contractors’ plans for future growth.

2022 MARCUM NATIONAL CONSTRUCTION SURVEY 4