Certification: What’s the Risk? - Articles

As all contractors know, risk is a fact of life in the construction business, and we accept it to varying degrees in everything we do. Many of your daily management decisions are guided by risk-related choices, and the key is to understand the risks you are taking and to mitigate them down to an acceptable level.

Having a Certified Construction Industry Financial Professional (CCIFP) on your team gives you the confidence that you have someone who is trained and knowledgeable in risk mitigation. Your CCIFP is also connected with a network of experts who can give advice on any challenges. CCIFPs have demonstrated their expertise in the industry and maintain their education to stay on top of the latest trends and emerging developments in construction accounting. The cost of not having a CCIFP on staff is too great.

Contract Risk

CCIFPs know the bottom line and the details and implications of the terms and conditions of the contracts you sign. Utilize their expertise to review contracts and help mitigate those risk areas as much as possible.

Subcontractor Risk

CCIFPs can tap into their expertise and networks to develop a prequalification process that helps identify and mitigate subcontractor risks. Having a financial qualification process driven by a certified financial professional helps you answer questions about subcontracted risk transfer.

Employee Talent

Attracting and retaining top talent is extremely difficult today; investing in the professional education and certification of your financial team should be a goal for every organization. Employees will reward you with greater expertise as well as higher confidence, commitment, and dedication to the company and job at hand.

Worker Safety

The industry is a high-risk business that requires many people to have their eyes on worker safety as well as safe work habits and environments. Through targeted education and programs, CCIFPs are keenly aware of and knowledgeable about current and safe work practices. Through CFMA resources and their network of peers, another area that CCIFPs are likely aware of is suicide prevention, which is all too prevalent in the construction industry.

Capital Availability/Credit Risk

By having CCIFPs on staff, a company is better prepared to manage and navigate the industry-specific financial challenges that all contractors face. Managing cash flow, vendor and subcontractor payments, and the company’s banking relationship are just a few of the unique construction-related financial areas that CCIFPs are equipped to handle.

Economic Risk

Contractors are exposed to liabilities if something goes wrong. Having a CCIFP on your team is critical to understanding your risks. Communication between the field and office, contractor to subcontractor, and with the owner can result in less general economic risk. CCIFPs are the foundation for better and more educated responses to inquiries and planning strategically for the future.

Having a CCIFP on your team is critical, as they will help you identify risk and have a plan to manage it. Utilizing their CFMA network for questions, support, and data is critical when you are developing your risk mitigation strategies. CCIFPs should be a source and resource for successful strategies in mitigating risk for every contractor.