Constructing Your Success from the Ground Up

Construction and Real Estate are specialized business niches with unique requirements. For decades, PBMares has helped contractors and real estate developers navigate through the troubled and ever changing waters of this industry. We focus on establishing partnerships with contractors to enable them to maximize profits and improve the bottom line. Your success is our success.

Contractors, developers, heavy construction specialists, home builders, land developers and specialty trades professionals all face their own challenges as they strive for success in the industry, but they have one thing in common: the need for excellent accounting and financial advisory services. Since every client is different, we strive to listen carefully to each one so we can identify opportunities and communicate clearly the options and choices available. Our goal is to provide all clients with the current, comprehensive information required to make the best decisions for their company.

SOLVING BUSINESS ISSUES

“David Nice Builders has a 25+ year relationship with PBMares. Their expertise and guidance over the years has helped our company grow successfully into what it is today. PBMares provides exceptional financial service and advice for all of our accounting needs. Our experience with their incredibly responsive team has surpassed our expectations.”
Katrina White, Controller, DAVID A. NICE BUILDERS, INC.

PBMares’ construction specialists work with clients ranging from small contractors to million dollar organizations throughout the Eastern United States.

With PBMares, you get a complete package. Our accounting and assurance teams work closely with tax compliance specialists to ensure the best financial presentation while maximizing your tax savings. We have seen how quickly economic conditions can change and are there to assist with budgeting and forecasting, job costs analysis, strategic planning down to succession planning and business valuations.

Accounting

In a busy construction company, it’s easy to make small mistakes that lead to inaccurate cost allocation. PBMares offers you extensive industry knowledge and experience to help you properly determine and allocate direct, indirect and overhead costs for each job, ensuring that all costs go to the appropriate contract. We also help with establishing effective job cost tracking systems and reconstructing misallocated costs when there’s a problem.

In the dynamic and competitive construction and real estate industries, planning for growth and anticipating future needs is a significant challenge. We help contractors and developers establish reliable estimates and maximize cash flow throughout project cycles and shifting economic conditions, with services that include:

  • Budget development
  • Establishing optimal cash flow procedures
  • Cash flow monitoring
  • Financial projections
  • Model validation and backtesting

Accurate cost estimates can help contractors and developers minimize the amount you owe and avoid tax overpayment that diminishes cash flow. We establish appropriate offsets, verify costs and validate project completion rates to help you avoid expensive surprises after the job is complete.

Are you confident in your overhead rate? Overlooked indirect costs can mean lost revenue and lower profitability for contractors. PBMares helps you identify all labor and other eligible costs to calculate the true overhead rate, improving the accuracy of your financial statements and boosting profit potential.

Audit & Assurance

Sometimes you need a closer look at contracts, job cost allocations, HOA dues and fees, or reassurance that you are developing regulation-compliant procedures. These industry-specific issues don’t always fit within the standard assurance service model. We provide agreed-upon procedures to help contractors and developers find the insights and solutions you need to resolve specific challenges and move toward your goals with confidence.

Errors in accounting and financial statements can lead to major problems for construction contractors. Inappropriate accounting methods and incomplete information not only threaten your ability to acquire new financing, but can even disqualify the company for bonding and surety. For contractors who handle government work, this kind of mistake also constitutes a violation of FARS rules. PBMares helps you determine the right level of assurance and offers audit, review and compilation services to keep you fully compliant and confident in your financial data.
In an industry as competitive as yours, it isn’t easy to attract and retain the talent your company depends on. PBMares offers complete employee benefits plan audit and third-party administration services to keep your plan strong and increase its effectiveness as a recruiting tool. From plan design and implementation to reporting and audits, we’ve got you covered.

How good is your financial data? Internal controls are a critical component of strong companies, especially in the contracting and real estate sectors. We understand how important it is for you to have the right people in the right job in order to ensure reliable financial information, comply with regulations and minimize the risk of theft and fraud. Nobody brings more industry experience than PBMares to help contractors and developers design strong internal controls, or review current controls to identify and eliminate potential vulnerabilities.

The state and local governments offer incentives to encourage businesses to invest in real property and create jobs within specific target areas throughout the state. To qualify for these grants and incentives, employers, owners, tenants, contractors and developers must adhere to specific requirements and demonstrate compliance with program regulations. To receive the state grants, the assistance of knowledgeable CPAs is often required. We can help you determine which projects and expenses may qualify and guide you through the application process for the grants and incentives.
Consulting

Each business transaction is different and nuanced factors within your industry impact the value of construction and real estate companies. We assist buyers and sellers with due diligence, verifying leases, evaluating subcontractors and carefully examining contracts to ensure the transaction provides you with maximum value.

Real estate companies must be bonded through a licensed surety company. To qualify for mandated bonding, you must be able to demonstrate a sound financial picture – yet building this financial stability requires bonding to be in place. We help you overcome these hurdles by building strong relationships with banks and surety providers so we can help you select the best partners for your financing and bonding needs. Our professionals carefully document your financial position, making sure that over- and under-billing is accurately reflected, verifying unbilled receivables and other collateral, and ensuring job completion accounting is reported properly and presented in the best light for your company.
Cyber-threats have never been greater, and keeping your construction company safe in a digital world is no simple task. The costs of losing sensitive client, vendor and staff personal information, banking and financial data or confidential content relating to plans and bids is too great to ignore. Our dedicated cybersecurity specialists help you protect your company’s data and reputation with rigorous cybersecurity assessments, testing, monitoring and training on best practices.

Contractors that work with federal, state and municipal governments must comply with a complex and ever-changing maze of Federal Acquisition Regulation System rules. PBMares’ construction and government contracting teams work together to help you determine allowed costs, identify disallowed expenses, allocate costs properly and verify correct chargebacks so you remain eligible to obtain future contracts. With us as your partner, you can track, monitor and validate costs to meet FARS standards on every project.

As cyber-risks increase and fraud and embezzlement remain persistent threats, the need for high-quality forensic accounting and fraud investigations expands. Unfortunately, fraud is predominant in the construction industry considering your contracts contain many inputs, suppliers and subcontractors. If you suspect fraud, or you need help establishing policies and procedures to reduce the growing risks of both traditional and cyber-crime against your company, the forensic accounting and fraud prevention specialists at PBMares will help you develop a risk prevention plan and test compliance with your existing policies. If a breach has occurred, PBMares can help you minimize the impact to your company and conduct a thorough investigation of the incident.

Sometimes construction contractors and developers must seek legal remedies for business conflicts or defend against legal challenges from others. We offer experienced litigation support and expert testimony services to help construction contractors and real estate developers remedy improper valuations, handle dispute resolution, resolve contract billing issues or navigate other legal challenges.

Mergers and acquisitions within the construction and real estate sectors bring significant risk. Does the target company hold hidden liabilities? Does the company’s performance match what is presented? We offer comprehensive support for mergers and acquisitions, with services that include:

  • Tax-efficient transaction structure
  • Due diligence
  • Placement of debt/equity
  • Financial statements
  • Performance analysis
  • Accounting method advice

Construction is a risk-intensive industry, and how you manage those risks is key to your future success. Everyday activities, like selecting subcontractors, scrutinizing contracts, building banking relationships, and finding the best surety fit, can open you up to risk. Add to that the growing menace of cybercrime, and you have no choice but to address potential risk head-on. PBMares works with you to not only identify risk, but to help you minimize the many threats you face today.

Accurate business valuation is imperative for sound business decisions. Whether you’re considering buying an existing construction company or selling, gifting or planning for succession of your own, knowing the true value of the business allows you to move forward with confidence. Our professionals bring deep industry knowledge to help you evaluate operations, equipment, contracts, assets, liabilities and other factors that impact the real value of construction and real estate companies.
Tax
Many construction contractors and developers have built their company as a family. That makes a smooth transition to the next generation a personal as well as a business priority. We can help you with estate and succession to ensure the company you’ve put so much into will pay you back generously, while providing ample opportunity for the next generation of company leaders.
Navigating a tax audit or other controversy alone is rarely a wise choice. If your construction company faces an inquiry by the IRS or another tax authority, our tax professionals are beside you to support your position and ensure that you are treated fairly. From low-level return inquiries to full sales tax audits, you can count on PBMares for experienced assistance throughout the audit process.

Complying with tax laws that vary dramatically between states can create major headaches for construction contractors. Which jobs, equipment and costs are included? Do you even have to file in a particular state? Sales tax is yet another consideration, with many variations and big potential impacts to your profitability. Eliminate the confusion with state and local tax (SALT) support from our experienced SALT professionals. We understand how to help contractors recognize and comply with the state and local tax laws that apply to you and minimize your overall tax liability.

With an ever-changing tax code, it’s not easy to minimize tax liability as a construction contractor or real estate developer. You don’t want to pay more than is legally required, either. We keep you up-to-date on the current laws and provide knowledgeable advice to help you take advantage of all the savings opportunities available while staying fully compliant with the latest changes to applicable tax laws. From cost allocation to tangible asset repair, we’ve got the insights that help you establish customized, long-term strategies to minimize your state and federal tax burden.

Handling long-term contracts correctly in tax returns is one of the most difficult tasks that contractors and developers face each year. We assist you in choosing the most appropriate accounting method and creating accurate expense/revenue projections to keep your tax reporting on target – and your cash flow strong.

As a contractor, you must select an accounting method from a variety of options. Choosing the accounting method that’s most appropriate for your construction company’s size, projects and individual goals demands a deep understanding of the legal and tax ramifications involved. Estimating expenses and revenues from long-term contracts is another challenge that can have significant consequences for your bottom line. PBMares supports construction and development professionals with filing tax returns, choosing and implementing accounting methods, completing Form 3115 accounting changes, evaluating long term contracts and other issues you face in meeting your tax responsibilities.

CONSTRUCTION INSIGHTS

MEET YOUR TEAM LEADER



Jennifer French, CPA

Partner, Construction and Real Estate Team Leader

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