Construction Industry Companies

The construction industry is a high-risk industry both financially and operationally. The cost and profitability of a project are estimated based on architectural plans and projects are often built during changing economic conditions.

In many instances, the design of a project changes after the project starts. In addition to the inherent financial risks, there are many operational risks, including the degree of productivity relative to the productivity anticipated in the cost estimate, and ensuring that the contractors building the jobs perform the work according to the highest safety standards.

construction industry

Industry Challenges

Many construction owners and managers focus on billings and collections and have a “gut feel” for how the business is doing. However, they often do not know whether their individual projects are performing profitably or according to budgets. There is an old adage in the industry that says, “If you want to know how the project is doing, we’ll tell you when we are finished.”

Our construction professionals will enable construction owners and managers to see how their jobs are doing during the project and will forecast how the jobs will do at completion versus the budget. You will be able to see profits based on the percentage of completion, billings, and collections, the status of change orders, anticipated cash flows and expected earnings. As such, management will be able to modify plans and adjust to changing business conditions before it is too late.

Services we provide to construction industry companies include, but not limited to:

  • Work in Process Schedule
  • Profit and Loss by Job (Project Profitability Analysis)
  • Costs per job
  • Over and Under Billings Reporting
  • Backlog by Job
  • Reporting for Banks and Bonding Companies
  • Aged Pending Change Orders
  • Analysis and Review of G702/G703 AIA Requisitions
  • Developing Key Performance Indicators (KPIs) and Key Risk Indicators (KRIs) for your specific construction company

Construction sub-sectors we serve, include, but are not limited to:  

Commercial Construction

Design & Build Construction

Construction Managers

General Contractors

Heavy Construction

Interior/DryWall

Residential Construction

Subcontractors

Suppliers

 

Other Deliverables We Provide:

Balance Sheet

Profit & Loss Statement (P&L)

Cash Flow Forecast

Annual Budget and Financial Business Plan

Earnings Forecast

General & Administrative (G&A) Expenses Vs. Budget

Accounts Payable Aging

Accounts Receivable Aging

Debt Covenant Compliance

Gain/Fade Analysis (Comparison of profit margins from period to period)

Development and analysis of KPIs (Key Performance Indicators)

Evaluation of Internal Controls and Development of Standard Operating Procedures (SOPs)

Comparison of actual results to the business plan 

Other Ad Hoc Reports requested by management

   

 

Additional Services CFO Strategies Provides

Work with lenders to obtain lines of credit

Identify and develop new banking relationships

Work together with outside 3rd parties (CPAs, Insurance, Regulators, auditors)

Assist in recruiting and training staff

Serve as a trusted business advisor

One-off projects such as mergers and acquisitions

Assist in implementing new regulations (PPP, EIDL programs)

Assist in Exit Strategies