CRI can help your construction company hit a “hole-in-one.”

The construction industry is characterized by swings in profit margins, available work, cash flows, and labor availability – all of which can have a substantial impact on your company’s profits. Additionally, as industry regulations increase and become more stringent, the cost of compliance will likely continue to grow. Our CPAs and advisors provide a broad range of accounting, auditing, and tax services to contractors and sub-contractors of all sizes. We advise clients regarding strategies to maximize their bonding capacity, plan tax savings, and enhance working capital. Plus, our spectrum of specialty services encompasses employee benefit plan auditing, IT consulting, risk assessments, and many others. Offering this comprehensive suite of services allows you to engage construction CPAs that understand your specific company while also enabling us to help your business hit a “hole-in-one.”


In addition to our in-depth expertise derived from serving thousands of construction clients, our professionals are members of various industry organizations that help ensure we are up-to-date on timely topics. Our memberships include the Associated Builders and Contractors (ABC)American Subcontractors Association (ASA), Construction Financial Management Association (CFMA), and National Association of Home Builders (NAHB). This construction industry “know how” combined with our robust service offerings makes us ready to help you keep your bottom line on par with your business goals.

3 Contractor Year End Strategies

To Lease or Purchase Equipment…That is the Contractor Question

Construction Fraud Blueprint

Featured Articles

More Construction Articles

Client SNAPshot

CLIENT:Large multi-state subcontractor
SCOPE:Perform financial statement audit, an affiliate’s audit, 401K plan audit, medical benefit plan audit, a state’s municipal tax returns, partnership tax returns, many owners’ tax returns, contractor’s licenses, and business consulting.
PROJECT:We recommended that the client obtain research and development (R&D) tax credits on their federal tax returns.
RETURNS:The owners of the company realized a tax savings of approximately $525,000 over the last three years.
$525,000 tax savings over three years
$525,000 tax savings over three years

Straight Talk 

Translating technical jargon into a plain English “text.” 
I’d like to bid on a project that is twice as large as any contract I have done before. The surety company wants to ensure that my working capital is sufficient. I sent you my most recent internal financial statements. How can I increase my working capital?
It appears that you purchased some new equipment with cash. First, consider obtaining long-term financing so that you can put that cash back in the company.
Should I finance the equipment over a certain period?
I would finance it for 60 months, if possible. If not, then I’d finance for as long as the bank allows. Additionally, what is securing your line of credit? If it is cash, CDs, or receivables, then refinance that line of credit for a due date that is more than one year from your next financial statement date. Then, be sure to change the collateral to equipment or another long-term asset.
That sounds feasible. Do you have any other suggestions?
You can work to collect any receivables more than 90 days old, as these are often discounted by the surety or bonding company. Additionally, if your investments are in stocks or equity securities, then you may want to move those into municipal or state bonds since surety companies generally do not discount bonds as much as they do equity securities. Finally, if you have any balloon payments on bank loans, then I would work to refinance those into longer term installment notes.
That sounds like a lot of effort.
It does, and it can be. However, since equipment is such a substantial cost to construction companies, it is best to make it work for you by financing it as long as economically feasible so that it does not diminish your working capital. We were all brought up thinking that debt was bad, but, in construction, it is often the best alternative to maintain healthy working capital and increase your bonding capacity. If you need me to discuss this strategy directly with your banker so that he understands why you need to make these changes, then I will be glad to do so.
I would appreciate that help. Do you think these directions will get me where I want to go?
It’s possible. If it doesn’t, then we will alternatively know that you did all that you could. Let’s sit down and discuss further and set-up the meeting with your banker.
Randy Dew, Chief Financial Officer, Ivey Mechanical Company, LLC
“Beyond the fact that CRI provides accurate and responsive accounting information from audit to tax, CRI’s team of professionals has an in-depth understanding of our multi-state commercial mechanical contractor business. After 10+ years of working together CRI still continues to bring value in many areas of business including an ownership transition. CRI was able to assist our company in understanding the available alternatives, and choosing the path best suited to meet our long-term objectives. We consider CRI one of our businesses’ most valuable resources for both consulting and basic accounting needs.”

Solutions Simplified

Down-to-earth descriptions of our services.
Accounting & Auditing Services

Advisory Services

Services Also Available for Construction

Construction Working Capital/Bonding Enhancement

As construction companies mature, they often target larger projects and new types of construction. Plus, they may also move into new geographic areas. A result of these changes often leads to the surety companies requiring more working capital than in the past. CRI helps our clients plan for these changes by encouraging them to operate their businesses in a way to maximize working capital, which most often is the basis for bonding capacity.

Construction Contractor Licensing (Multi-State)

Before construction contractors pursue opportunities in other states, the first thing they need to do is get a license in that state. As with taxation, each state board has its own requirements for this license – which often entails financial statements showing different milestones in net worth and different levels of attestation from a CPA (e.g., an audit, not a review). When our clients notify us of their plans, we evaluate their current position and help them attain licensing in the most cost effective manner.

Business Support & Transactions Services

Employee Benefit Plan Services

Governance, Risk & Assurance Services

IT Audits & Assurance Services

Tax Services