General Contractors and Construction Managers operate on very thin margins and the projects often entail high risk under difficult deadlines. Consistent and disciplined operational controls are important so that preconstruction services, project management, field and equipment operations, and back office personnel are working in concert to service clients while protecting the company. In addition to the inherent complexity of the construction business, many of our construction clients oversee multiple offices, varying service lines, and their own real estate development projects.
Financial management challenges are abundant since each project can have varying requirements such as customized requisition packages, certified payrolls, reports required by government agencies and funding sources, owner and contractor controlled insurance programs, and subcontractor default insurance programs. Overall company financial reporting can be challenging since a significant part of the financial statements involve estimating profits and costs to complete on projects. Sureties, bank, and other stakeholders need to be comfortable that financial reports include reliable estimates.
Cash flow control is very important as tight project margins necessitate matching of project payments to the related receipt of funds from project owners. Strong monitoring of company overhead in light of projected financial performance and projected backlog are essential within this environment.
EisnerAmper approaches each engagement with a big picture perspective, working across our many specialties to provide general contractors and construction management firms with a comprehensive service solution that works for their specific needs. We offer a wide range of specialized accounting, consulting and tax services to meet the unique challenges faced by construction contractors.