Construction & Real Estate Industry Brochure


BKD’s construction consultants work with hundreds of contractors to help improve bottom lines and increase cash flow. Our experience in tax planning, overall financial management, financing and bonding has helped contractors throughout the U.S. improve performance by gaining more control over their internal finances, overcoming challenges and meeting their strategic goals.

Managing the Risks Surrounding Your Workforce

To reduce risk, contractors must know how to use multiple types of data and apply available technology. Risks include the inability to recruit skilled workers, employee actions tarnishing the company’s reputation, decreased productivity and discriminatory practices.

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Copyright© 2017 by the Construction Financial Management Association (CFMA). All rights reserved. This article first appeared in CFMA Building Profits (a member-only benefit) and is reprinted with permission.

Tax Strategies

Reducing your tax exposure makes good business sense. Our tax consultants are skilled in delivering creative tax strategies designed to take advantage of benefits within the tax law. Experience how our insight can help you:

• Develop federal and state tax strategies designed to lower or defer taxes
• Anticipate and resolve controversies with taxing authorities
• Select a “tax-aware” organizational structure matching your strategic plan
• Identify potential refund opportunities through reverse sales tax audits and sales and property tax reviews
• Identify opportunities to reduce unemployment and payroll taxes
• Identify and assist with incentive programs, including tax credits and training reimbursements
• Conduct real estate cost segregation studies that offer a breakdown of costs that can enable you to realize depreciation deductions and generate significant cash-flow savings
• Seek tax credits for research and development work

Financial Assurance

Your relationships with sureties and lenders are critical to the continued success of your company. These financial statement users demand more predictive information and more thorough performance reports to help with decision making. Our advisors can objectively evaluate your current financial reporting and recommend changes for presentations to financing and bonding sources. In addition, your financial statements can be used internally by management to track results and more effectively measure performance. Financial statements also can provide useful and accurate data to your costing and engineering departments.

Our financial assurance solutions include:

• Conducting audits, reviews and compilations to provide financial accountability and creditability to lenders, bonding agents and state regulatory agencies
• Analyzing lease versus buy decisions
• Helping you select the proper accounting method
• Helping train your accounting personnel
• Providing bookkeeping and internal accounting services on an outsourcing basis
• Compiling budgets and forecasted financial statements
• Designing and implementing job cost-accounting systems
• Assisting in determining key performance indicators and developing appropriate monitoring systems

Succession Planning

Planning for internal management and ownership succession is a complicated process that must take into account numerous factors, including the tax effects of alternative plans, gifting options and the structure and financing of buy/sell agreements. These issues must be balanced with your personal objectives and family or management expectations and obligations.

BKD's approach to business succession is a plan to address all stages of your company’s life cycle. The cycle mirrors the business cycle: From startup to growth to maturity, our approach can help plan the evolution and growth of your company. Here are some of the ways we can help you with succession planning:

• Develop a contingency plan to cover problems resulting from an untimely death or disability, including management succession planning
• Develop a tax-advantaged estate plan
• Analyze various gifting options
• Analyze the financial effect of various sale transactions on your business
• Project the income needed for you to enjoy a comfortable retirement and develop a plan to accumulate those funds
• Develop a plan for managing your exit strategy

Mergers & Acquisitions

Our merger and acquisition consultants can guide you through the difficult process of strategy, synergy, valuation, financing, negotiation and integration. We can help you:

• Develop an appropriate acquisition or divestiture strategy
• Conduct financial and operational due diligence
• Determine a range of values for your company
• Evaluate tax and accounting implications
• Evaluate financing alternatives
• Structure transactions and negotiate terms
• Develop and implement pre- and post-integration plans

Wealth Management

WealthPlan is BKD's approach to growing, preserving and protecting the successful business owner's wealth and capital base. BKD’s consultants are experienced in providing tax, retirement, estate and personal financial planning services. In addition, the registered investment specialists of BKD Wealth Advisors, LLC can help you plan and implement an investment strategy that meets your goals and advise you on your insurance coverage. Ask your advisor for more information about the following WealthPlan services:

• Investment advice – strategies to grow your money
• Insurance solutions – evaluate your insurance coverage
• Income tax planning – project consequences of wealth-planning tax tactics
• Retirement services – project your future income needs and expenses
• Estate planning – craft a plan for transferring your wealth
• Personal wealth strategies – present strategies for protecting your assets and consolidating debt

Business Valuations

BKD's valuation consultants are familiar with the appropriate valuation methodologies for construction companies. Our valuations comply with accepted standards and can help mitigate your exposure to legal repercussions. Depending on the purpose of the valuation and your objectives, a BKD valuation can result in:

• Tax savings through proper gift and succession planning
• Improved business operations as a result of analysis and consultation
• Relief from worry about company value in buy/sell agreements
• Enhanced knowledge of your industry through market analysis
• Successful sale or purchase of a business
• Settlement of shareholder disputes

Strategic Financial Planning

BKD’s consultants can apply first-hand knowledge of best industry practices to help you develop your company’s mission and vision, as well as a plan to implement them. We can help you:

• Facilitate strategic planning retreats that examine the competition, identify strengths, weaknesses, opportunities and threats and develop strategic alternatives to reach goals
• Prepare a business plan to implement your strategic plan
• Prepare a capital financing plan for major projects, working capital, startup costs, acquisitions and new product development
• Evaluate various financing alternatives
• Negotiate financing terms and assess bonding company alternatives
• Use the resources of BKD Corporate Finance, LLC to assist with private debt and equity placements, acquisitions, sales, mergers and initial public offerings

Information Technology Management

Effectively managing your technology assets can help your company avoid technological obsolescence. Whether it’s an accounting package, an MRPII system or a financial reporting database, BKD can:

• Analyze your current system’s ability to meet present and future business needs
• Assist in proposal development, vendor selection and contract negotiations
• Analyze hardware and software options
• Assist with implementation, plan development, project management and overseeing selective outsourcing
• Develop and conduct system and application testing procedures
• Train your staff to fully apply the system

Dispute & Litigation

Despite efforts to reduce construction litigation costs, the volatile, unique and complex nature of large-scale projects makes arbitration and litigation all too common. BKD's Forensics & Valuation Services consultants can help you develop a fact-based analysis that positions you for settlement, recovery or mitigation of project costs and risks. Solutions include:

• Claims analysis and preparation
• Negotiation, mediation and arbitration
• Discovery support
• Expert witness testimony

IT Risk Services

Successful companies realize the necessity of managing business risk. Whether you need compliance assistance or have a desire to improve the corporate governance and data security of your organization, the BKD IT Risk Services Team is here to assist you. Our experienced, certified consultants can help you identify and manage risk with best practices and knowledge of industry-specific regulations.

Regulatory Compliance

Every day, lending institutions, sureties, governments and municipalities and other owners make decisions based on the health of your financial statements and applications. With so much of your company’s future riding on these documents, you can’t afford to overlook details.

BKD’s construction professionals can help you improve your profitability and operational efficiency with value-added compliance solutions, including:

• Financial reporting
• Accounting services
• Bonding, prequalification and financing application assistance

Overhead Analysis

A contractor’s markup for overhead and profit can be the most critical factor in determining whether you are successful in a competitive bidding process. Contractors who understand how to manage their overhead effectively are more likely to succeed. BKD's experience can help you:

• Identify overhead by type to determine the best methods for controlling it
• Identify methods for allocating different types of overhead
• Understand the fixed versus variable portion of overhead pools
• Use risk-based decision making in developing alternative overhead rates
• Understand the effects of market conditions on overhead markup
• Evaluate management information needs to control contract activity
• Implement web-based technology

Construction Business Process Assessment

Is your company operating efficiently? Do your internal controls help protect against fraud? Does your computer system provide the information management tools you need to make informed decisions?

A business process assessment can help you find answers to these questions, identify operational weaknesses and develop a plan to improve efficiency and impose effective process controls.

We can help you:

• Analyze your business processes, including bidding and project management
• Identify critical points in the construction process
• Develop a plan for the efficient use of resources that will align people, processes and technology to the company's strategy
• Facilitate your implementation of business process assessments
• Achieve ISO 9000 certification
• Benchmark performance against your peers

Tim Wilson

National Industry Partner

Jason Myers


Scott & Ritter Inc.

“When we first started in business, I felt that BKD was an overkill for our needs and too expensive. Over the years, as we and our needs have grown, the firm has become an invaluable member of our team.

The business has now bloomed and is diversifying and with BKD’s coaching, there are several side line businesses that are starting their growth. Even in the estate planning and financial end of personal life, these guys have played a major role. Looking back, it has been a great relationship and I anticipate that if our doors ever close, some of their staff will be the last ones out.”

— Larkin Ritter, President
Scott & Ritter Inc.
Bowling Green, Kentucky

Scotty’s Contracting & Stone, LLC

“We are a heavy highway construction firm that is owned by one of the largest ESOP companies in North America. As such, we need access to specific expertise in two of the more highly specialized areas. With BKD, we have a single source for both areas. BKD provides us in-depth knowledge of the construction industry and also provides support, insight and guidance from the ESOP perspective. BKD’s expertise is highlighted by their knowledgeable, realistic and accessible staff. We are pleased to have BKD as one of our business partners.”

— Rod England, Chief Executive Officer
Scotty’s Contracting & Stone, LLC
Bowling Green, Kentucky

Performance Contracting Group

“As an employee owned specialty contractor, we know the importance of understanding and responding to the unique needs of our customers. BKD has taken the time to learn our company and our business, and provides us with the expertise and personal attention that gives added value to their core services. Their knowledge and experience of ESOPs as well as the construction industry provides us with realistic approaches to complicated problems.”

— Dan Hefferon, Vice President & Chief Financial Officer
Performance Contracting Group
Lenexa, Kansas

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