December 2021 www.McCarthy.CPA
MCC Construction Zone
Proactive Advice for Construction and Real Estate Professionals
MCC Construction Zone
Marty McCarthy, CPA, CCIFP
In This Issue As we approach the new year, it is a good time to look at our goals and our plans to achieve them. One of our goals is to provide you, our valued clients, with even more talent and resources to strengthen your financial position, grow your business, and become more profitable. We will accomplish this goal by merging Borislow, Factor & Kaufmann (BFK) into our firm, effective January 1, 2022. This issue of MCC Construction Zone is designed to help you plan for further success in 2022. We discuss how M&A can be a growth strategy, succession planning, key performance indicators to watch in 2022, and how to establish SMART goals. In addition, we provide you with words of wisdom on how to approach 2022 from our team.
On behalf of everyone at McCarthy & Company, I wish you and your family a joyous holiday season and prosperous New Year. Happy reading.
Marty McCarthy, CPA, CCIFP Managing Partner
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Contents
MCC Construction Zone
M&A As a Growth Strategy ........................................................................................................................... 3 The Construction Forecast for 2022 Looks Promising .................................................................................. 6 Succession Planning is Key to Sustaining Your Business ............................................................................... 9 Develop SMART Goals for 2022 .................................................................................................................. 11 Advice From Our Team for Success in 2022 ............................................................................................... 13 Important Key Performance Indicators to Watch in 2022.......................................................................... 14 McCarthy & Company Named GBCA Affiliate of the Year .......................................................................... 17
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MCC Construction Zone M&A As a Growth Strategy David Gibbs, CPA, CCIFP, CRE, MBA
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any companies use M&A as a strategy for growth. The international consulting firm McKinsey & Company found that six of ten successful companies include M&A in their growth strategies. Those companies increased their revenue at or above their industry segment’s growth rate and enjoyed twice the success of lagging competitors.
Although there are a lot of reasons why a company may choose to merge, one of the best reasons is to increase value for the for the firm’s clients, employees, and stakeholders. That is exactly our intention with merging Borislow, Factor & Kaufmann (BFK) into our firm.
Value Creation Our clients rely on us to bring them innovative ideas and proactive solutions based on industry best practices and our in-depth knowledge. Clients expect us to help them identify new opportunities for growth and provide realistic and viable solutions to their challenges. We need the best talent on our team to deliver and exceed client expectations. “We have been seeking the right strategic partner to add more knowledgeable talent to our firm. BFK has the right mix of resources, professional expertise, and passion for client service,” said Marty McCarthy, CPA, CCIFP, and the managing partner of McCarthy & Company. “We best deliver value to our clients by having outstanding talent and broadening our service platform. The addition of the BFK team expands our tax and accounting depth.” 3 | Page
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MCC Construction Zone Both firms are well known for providing proactive personal service to their clients ranging in size from small family-owned or closely held businesses and midsize companies, to multimillion dollar corporations in diverse industries.
“McCarthy & Company shares the same values and unwavering commitment to exceptional personal service as we do,” said Jeffrey M. Factor, CPA and managing partner of Borislow, Factor & Kaufmann. “Business owners and executives rely on both of our firms for effective operational and growth strategies. Our reputation for value is built on results. The same is true for McCarthy & Company.”
Defining the Operating Model McKinsey expert professionals define an operating model as having three elements – structure, process, and people. In their article entitled Realizing the Value of Your Merger with the Right Operating Model, Caitlyn Hewes, Rebecca Kaetzler, Kameron Kordestani, and Olivier Rigaud stress that management must address all three elements to design a value-focused operating model. Defining the governance, processes, and key talent considerations are critical. Decision rights and committee structures need to be defined, processes and procedures must be designed, performance management metrics must be decided on, as well as norms and value-management practices, roles and responsibilities, and a wide array of other items. Both firms in a merger bring their own best practices to the combined company. Merger partners must evaluate and agree on which practices will be adapted in the new operating model and which will not.
Considerations McKinsey expert professionals identified several constraints and risks to an operating model redesign in the above referenced article. • Building a new executive-leadership team that aligns on a vision, agrees on the path to get there, and commits to modeling the new company’s ways of working. • Getting the top-team selection and alignment right. • Combining two existing operating models to one. • Using an interim operating model for some time after a deal closes before transitioning to an end-state model. • Retaining talent while maintaining profitability. Workforces are typically anxious during a redesign, and a desire for information and clarity may decrease productivity during the process. • Dealing with regulatory and legal considerations may restrict what organizations can do, design, communicate, and implement.
Winning at the Merger Game In a McKinsey blog post entitled How to Win at M&A, authors Oliver Engert and Emily O’Loughlin discuss what works and doesn’t work when combining organizations. They explain that the biggest mistake that executives make is looking only at the surface of the acquired company’s mission statement and assuming that it is in alignment with theirs. As stated in the blog, “companies combine to gain competitive advantage. When mergers and acquisitions fail, our research finds it’s mostly because organizations too often overlook or ignore organizational culture and human capital issues and pay scant attention to integrating these softer issues into the “hard” integration process.” McCarthy.CPA
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MCC Construction Zone “According to the McKinsey Merger Integration Conference survey (2010-2017), over 50% of companies that do not effectively manage culture when going through a merger or acquisition report that they do not achieve their synergy targets.”
The blog points out that high-performing companies strive to capture synergies of 30% to more than 100%. These companies recognize that it could take 3-5 years to deliver capital and revenue synergies. Furthermore, high performers begin working on the integration before the effective date of the merger. They take a scientific and quantitative approach to diagnosing and addressing cultural conflicts and work to create alignment. They also tailor the process to the company coming into the firm instead of taking the exact same approach that they took with other mergers.
We have been working on our new operating model for months and hope that you will find the transition smooth. Our combined firm will operate as McCarthy & Company beginning on January 1, 2022, out of the firm’s new office located at 492 Norristown Rd, Ste. 160, Blue Bell, PA 19422. Together we will have nearly fifty professionals to serve our clients throughout Southeastern Pennsylvania and the Mid-Atlantic states. Our position as a “go-to powerhouse” in assurance, accounting, tax, and business advisory services will be enhanced because of the merger.
Feel free to contact any of our team members with questions at 610.828.1900. About the Author David Gibbs, CPA, CCIFP, CRE, MBA is a tax partner and McCarthy & Company’s partner-in-charge of the firm’s Real Estate Services Group. David was recently awarded the Counselor of Real Estate® (CRE®) designation. Among the most respected real estate specialists in the industry, a CRE® provides intelligent, unbiased real estate advice that achieves the best results for a client. David can be contacted at 610.828.1900 or David.Gibbs@McCarthy.CPA.
Disclaimer: This article is for informational purposes only and does not constitute professional advice. We strongly advise you to seek professional assistance with respect to your specific issue(s).
David Gibbs, CPA, CCIFP, CRE, MBA
Call us to design your 2022 tax blueprint. 610.828.1900
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MCC Construction Zone The Construction Forecast for 2022 Looks Promising Richard P. Higgins, CPA
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he overall forecast for the construction industry looks promising even though inflation is high, the supply chain is tight, and labor and material costs are rising. The pandemic continues to disrupt operations across all industries as another coronavirus variant comes into play.
While most sectors of the construction industry were hit hard during the pandemic, residential grew due to the high demand for housing. Home prices were inflated in 2021 to a level that has not been seen before. Even though “the construction outlook for 2022 is looking positive, the industry will face challenges,” said Anirban Basu, chief economist for Associated Builders and Contractors (ABC) and CEO of consulting firm Sage Policy Group. Basu shared his economic forecast for the industry during a webinar for ABC’s Construction Executive magazine on December 8. “I think that 2022 is going to be a very busy for construction," added Basu. "Think very long and hard before you enter into contractual obligations. Make sure you build enough margin and contingency."
“Skyrocketing home prices may also have a positive impact on the construction industry,” Basu explained. “Local governments drive much of their revenue from property taxes, and home reassessments will mean more tax base for many communities, ensuring those governments still have money available for construction projects. Plus, much of the money for government construction included in the American Rescue Plan has yet to be spent.” McCarthy.CPA
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MCC Construction Zone “So state and local government spending, even without the infrastructure package, would have been a driver of construction activity,” Basu continued. “But now infrastructure factors on top of those monies, so you should see a lot of state and local spending on construction going forward, including school construction, which stands to be one of the big winners.”
The inflation rate in the U.S. increased to 6.8% in November of 2021, the highest since June of 1982. It marks the ninth consecutive month inflation was above the Federal Reserve’s 2% target. Basu expects inflation will remain high in 2022 even if the Federal Reserve attempts to limit the inflation rate to 3-4% next year, with a drop coming later in the year.
The prices of construction materials have risen rapidly over the past year. As of October, the 12month producer price index for steel mill products was up 141.6%, according to the U.S. Bureau of Labor Statistics. “A lowering inflation rate, along with expected rising interest rate and the recovery of manufacturing and supply chains, could help lower the prices of materials like steel, copper, and aluminum,” said Basu. “With so many public projects coming in the next year, it may be the time to pursue mergers and acquisitions. I think, to be successful, it’s going to help to be bigger,” Basu explained. “Significant technologies are more expensive, as well as recruiting and training costs. It’s nice to have a larger line of credit and more bonding capacity to go after some of these large-scale projects that are coming down the pipe, whether in infrastructure, or other segments.”
Dodge Data & Analytics anticipates modest growth of 6% in the construction industry for the next year, despite challenges with labor, supply chains and productivity. "We expect total starts to be above 2019 levels in 2022, mainly due to the residential sector," said Richard Branch, chief economist for Dodge during their quarterly economic forecast event in November. "Quarterly growth rates will be slow over the course of the next year, however. It represents an economy that is getting off a sugar high and getting into a more sustainable growth pattern."
"We will see a 32% increase in construction starts over the next five years if the Infrastructure Investment & Jobs Act (IIJA) is passed,” Branch said. “If the bill is not passed, the growth rate falls almost in half to 14.9% over five years, which is very weak. IIJA would inject $550 billion in new spending for roads, bridges, and other hard infrastructure over a five-year period. While the impact of this funding will be felt immediately, an even stronger influence will be felt from 2023-2025 as the funding trickles through to larger projects.” "We anticipate states will want to tick those larger projects off their list first with these dollars," Branch says. "We assume 80% of these dollars will be spent by 2026."
"Project starts normally take about three months to get off the ground," Branch said. "Right now, the lag for projects to start is about eight months. Starts will grow in 2022 but it’s going to be modest because projects are taking longer to start, and this lag is due to higher prices and fewer people. Prices and shortages will persist beyond 2021, leading to longer lead times from planning to groundbreaking and your company needs to be prepared."
It will be interesting to see what happens in 2022. Both economists cited in this article anticipate growth in the construction industry. Even so, many variables will impact if the industry expands or contracts next year. 7 | Page
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MCC Construction Zone About the Author Richard P. Higgins, CPA is the managing partner in the New Jersey office of McCarthy & Company. Contractors trust Rich to assist them with a strategy to achieve their goals by looking at key indicators such as productivity, job costing, profit margins and cash flow. Rich also helps contractors establish realistic benchmarks to assess how well they are doing or to alert them to issues that need to be addressed. He can be contacted at 732.341.3893 or Richard.Higgins@McCarthy.CPA.
Sources: 1. Economist Projects 'Very Busy' 2022 for Construction Industry. James Leggate. ENR. December 9, 2021. 2. Bright and Busy Future Ahead for the Construction Industry. Jessica Leggate. For Construction Pros.com. November 3, 2021.
Rich Higgins, CPA
Disclaimer: This article is for informational purposes only and does not constitute professional advice. We strongly advise you to seek professional assistance with respect to your specific issue(s).
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MCC Construction Zone Succession Planning is Key to Sustaining Your Business Martin C. McCarthy, CPA, CCIFP
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uccession planning is the key to sustaining your business into the future. Contractors need to address who will take over the business when they retire or must leave the company due to circumstances that are beyond their control.
Succession planning is a process and strategy for replacement planning or passing on leadership roles. It is used to identify and develop new, potential leaders who can move into leadership roles when they become vacant. Having a succession plan in place will ensure that the owner’s wishes are carried out and prevent a power struggle within the organization. (Wikipedia)
Identifying the Next Leader A succession plan should clearly identify the capabilities, roles, and talent needed to lead the company. It is important to match any potential candidates’ temperament and skill set to the job. Money and resources will be invested in grooming the successor. Making sure the right person is selected for the job is critical. Family-owned businesses may want to transition leadership to the next generation. Unfortunately, a family member(s) might not possess the right skills to take over the company or more importantly
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MCC Construction Zone in some cases, even be interested in the business. If a relative is not qualified for the position, they should not be considered ‒ that would be a critical mistake. Other options include a person inside of the company or, if the right talent is not in-house, hire someone who has the experience and potential to run the company or, alternatively, look for a merger partner. Preparing for the Transition of Leadership Strategic companies identify talented and capable leaders five to ten years before they are needed to serve. It could take this long to prepare the right person for the job. A development program is recommended to ensure that the successor is ready when the time comes. This could include: • Leadership training • On-the-job training • Mentoring/ Shadowing • Coaching • Relationship transition planning It is also advisable to have the new leader in place at least one year before the owner leaves the company to ensure that the successor can accurately assess the duties and responsibilities, which will help the success of the transition. This is especially important when transferring critical business relationships.
Other Considerations Owners should discuss with each other and key employees their expectations, vision for the company, and the intent of the transition plan. Succession planning requires leadership to be openminded and honest about the possible impact on: • Family relationships and finances • The company’s culture • Employee retention • Client relationships Everyone involved should have the opportunity to voice their opinions and concerns and decide whether to the support the plan. Buy-in is critical to the success of a succession plan.
About the Author Marty McCarthy, CPA, CCIFP, is the managing partner of McCarthy & Company. He is well respected by sureties and bankers for the high quality of his work and profound understanding of the construction industry. Marty helps clients by providing them with the insight needed to grow their business. He can be contacted at 610.828.1900 or Marty.McCarthy@McCarthy.CPA.
A version of this article was originally in Construction Executive published by the Associated Builders and Contractors Association (ABC).
Marty McCarthy, CPA, CCIFP
Disclaimer: This article is for informational purposes only and does not constitute professional advice. We strongly advise you to seek professional assistance with respect to your specific issue(s).
McCarthy.CPA
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MCC Construction Zone Develop SMART Goals for 2022 Kerrianne Brady
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ith the pandemic still causing problems for most contractors, it is important to set realistic goals for 2022. You can attain almost any goal if you are willing and able to work on it. A stretch goal, or one that is harder to obtain, is more motivational than one that is easy. To be realistic you need to have available the human capital, talent, as well as financial and other resources. Establishing a time or date to realize your goal will ensure you are consistently working towards it. Time frames should be specific to avoid letting business or life events stand in your way.
SMART is the acronym for specific, measurable, achievable, relevant, and timed.
Specific Saying that you want to increase revenue and profit is not specific enough. You need to add a qualifier to the goal to measure it, as well as a date. Examples are: • $1 million in revenue by December 31, 2022. • $100,000 in profit by December 31, 2022. • $5 million in revenue by December 31, 2026. • $500,000 in profit by December 21, 2026.
The above examples include short-term and long-term goals. Contractors should always specify both types of goals, so they know where they want to go now and in the future. During the pandemic, consider “what if” scenarios to make specific goals more credible.
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MCC Construction Zone Measurable Establish tangible criteria for measuring progress toward the attainment of each goal you set. I highly recommend setting milestones with deliverable dates to break up the task and keep you focused. For instance, if your goal is to introduce new protocols to safeguard employees from COVID, some of the milestones would include hiring a site safety officer; establishing criteria, objectives, and a budget; deciding if you want to develop the program in-house or hire a consultant; developing a training program; communicating the importance of this initiative to your employees, etc. Each of these milestones need to have a firm date by which they will be delivered.
Achievable and Relevant Achievable and relevant goals are ones that you can accomplish by a certain date. Goals should not be so much of a stretch that you cannot achieve them. In the above example, I gave a revenue and profit goal of $5 million and $500,000 respectfully by 2026. I assume that revenue will increase by $1 million per year based on contracts won, expected completion dates, and sales forecasts, as well as historical data and benchmarks on similar type companies. The profit margin is 10% based on current margins. Provided everything goes as planned, these goals should be attainable.
A contingency plan needs to be in place in case of pandemic related disruptions such as lost or delayed contracts, shutdowns, increased labor and materials costs, and lower profit margins due to health and safety compliance.
Timed Goals without due dates are rarely achieved. Instead, realizing the goal gets pushed back and the focus is on what must be done in the moment. Firm dates must be established for each goal and milestone. Communicate the importance of meeting due dates to everyone in your company and hold people accountable. Develop a scoreboard or other method to communicate your progress in achieving your goals. This can be as simple as holding quarterly team meetings or sending employees an e-newsletter on your successes.
Questions to Consider Six questions that you should consider when writing a SMART goal are: 1. What exactly do I want to accomplish? 2. Why is it important (purpose or benefits) to realize this goal? 3. Where do I want to focus? 4. Which resources need to be available? 5. Who needs to work with me? 6. When can I do what needs to be done?
Plan, Do, Review Contractors should make it a habit to plan, do, and review. In other words, plan out what you are going to do, implement the plan, and discuss what went right and what went wrong with your entire team.
This simple strategy can make a significant difference in your success. Problems within your organization will be quickly identified and actions steps will be developed to take corrective action. McCarthy.CPA
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MCC Construction Zone Effective leaders are clear about what they want, how they are going to get there, and by when. These leaders develop tracking mechanisms to keep them on task. Financial reports and key performance indicators (KPIs) can be used, as well as performance reports on the activity of each job. The important thing is to closely watch your progress towards reaching your goals, as well as recognizing obstacles that can stand in your way. About the Author
Kerrianne Brady
Kerrianne Brady is the firm administrator at McCarthy & Company. She takes care of everything at the firm under the guidance of managing partner Marty McCarthy. Kerrianne can be contacted at (610) 8281900 or
Kerrianne.Brady@McCarthy.CPA.
Disclaimer: This article is for informational purposes only and does not constitute professional advice. We strongly advise you to seek professional assistance with respect to your specific issue(s).
ADVICE FROM OUR TEAM FOR SUCCESS IN 2022 Vow to be 1% better each and every day. That’s not a hard number, but if you do that, it compounds quickly and can transform your company! – Marty McCarthy Review your bank statements each month. Wire fraud is becoming more and more popular so make sure you know where your money is going. – Matt Boland Clean up your chart of accounts. Delete or deactivate any unused or unnecessary accounts. Consolidate/rename any redundant accounts and properly classify each. This is an easy way to prevent misreporting and increase reliance on financial data. – Kyrstin Mackrides Bid jobs you can make a profit on. Winning jobs that lose money just to keep people busy can lead to hardships in the future. – Kyle Hartranft As a leader, your attitude has a powerful impact on others. Be an example. A positive attitude spreads and becomes a natural part of your company’s culture. – Kerrianne Brady Project your current year net profit. That way you can maximize retirement and tax savings throughout the year. One of the biggest tax savings tools at our disposal are the multiple retirement vehicles. To ensure money goes into your retirement account and not the IRS coffers is best planned for in the first quarter. – Christopher Abell
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MCC Construction Zone Important Key Performance Indicators to Watch in 2022 Marty McCarthy, CPA, CCIFP
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t is important for contractors to watch key performance indicators (KPIs) to gauge how well they are doing. Contractors typically look at lagging (historical) indicators by comparing the current time period to the same period in the prior quarter or year. Although this information is valuable, assessing predictive (leading) KPIs to look at what might happen in the future is even more helpful.
Lagging vs. Leading KPIs Lagging KPIs are backward-looking financial measurements where predictive indicators measure progress along the way. Historical KPIs are important indicators on how well a company is being managed and producing results. Predictive KPIs are helpful because they can be used to manage future outcomes. Leading indicators focus on the current situation. Different scenarios can be used to predict outcomes, like what will happen if contracts are cancelled or delayed, or how escalating lumber prices will impact profit margins. Examples of predictive KPIs are: • Percentage of Predictability of Construction – the change between the actual time spent on construction towards the available for use stage and the estimated time projected as a percentage of the estimated time on the contract. McCarthy.CPA
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MCC Construction Zone • • • • •
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Percentage of Projects Completed Early or On Time – the number of projects completed early or on time out of the total number of projects started. Percentage of Projects Delivered Late – the number of projects delayed compared to the total number of projects started. Cost of Labor – the sum of all wages paid to employees on the job including benefits and payroll taxes. Cost of Materials – the difference between the estimated and actual cost of materials. Bid Development – the number of bids needed to get the desired amount of work. Contractors should also look at the number of pending bids currently being prepared, business development meetings scheduled and completed, active prospects and probability of winning work and other metrics related to business development. Contract Pipeline – the number of leads and contracts pending. Subcontractor Inventory – how much cash is tied up in over-purchasing materials.
KPIs that look at the quality of the workmanship on a job are also important to watch. Management should establish controls to ensure that a high-quality project is constructed with minimal change orders, rework, and defects. These metrics can include the cost of work done incorrectly the first time and the number of construction quality issues still outstanding when the project is ready to be occupied. Analyzing data from change orders can help general contractors assess the performance of trade contractors.
KPIs to Watch The most important indicators to watch when a company is under financial distress are the ones that will predict future inputs and outputs of cash, as well as the availability of working capital. Now that construction input costs are spiraling out of control, work in progress (WIP) is important to watch. WIP measures a contractor’s investment in materials, labor, and overhead to complete a job. Since WIP is an indicator of job profit at a point in time, it can predict potential cash flow issues. Cash flow KPIs give contractors the means to evaluate income and performance. They include sales and contract income, outgoing costs and expenses, and payroll. Contractors should also track profit analysis KPIs like revised margins, forecasting deviations, and subcontracting costs for each job.
Construction project management software can help calculate KPIs for each job. These KPIs are based on timing, budget, quality, and effectiveness. They can help contractors identify cost variances (planned budget-actual cost) and if the project is being managed effectively. KPIs used to assess if a job is well-managed include planned hours vs. actual hours and percentage of labor downtime. Labor costs reduce profit margins if the actual hours are higher than anticipated. This is important to know to improve future job estimates. The percentage of labor downtime (downtime hours/total hours) is a productivity measurement. Zero percent means that field staff are working 100% of the time.
Financial KPIs Financial KPIs gauge if the company is growing, shrinking, profitable, or maintaining its performance. Contractors can identify trends in expenses, cash flow, and revenue growth or decline. The four major categories of financial KPIs are: 1. Profitability – Return on assets, return on equity, and times interest earned. 2. Liquidity – Current ratio, quick ratio, days of cash, and working capital turnover.
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MCC Construction Zone 3. Leverage – Debt, under-billings, backlog and revenue to equity, asset turnover, fixed asset ratio equity to selling, as well as general and administrative expenses. 4. Efficiency – Backlog to working capital, months in backlog, days in accounts receivable, inventory, accounts payable, and operating cycle.
Contractors can benchmark their KPIs against similar companies in the same market or geographic region to determine how well they are doing compared to industry standards. This information will help identify areas that need improvement. Focus on the KPIs that provide valuable information on company and job profit margins. By identifying and understanding internal and external challenges, improvements can be made to processes and operating procedures. About the Author Marty McCarthy, CPA, CCIFP, is the managing partner of McCarthy & Company. He is well respected by sureties and bankers for the high quality of his work and profound understanding of the construction industry. Marty helps clients by providing them with the insight needed to grow their business. He can be contacted at 610.828.1900 or Marty.McCarthy@McCarthy.CPA. A version of this article was originally in Construction Today published by the General Building Contractors Association.
Disclaimer: This article is for informational purposes only and does not constitute professional advice. We strongly advise you to seek professional assistance with respect to your specific issue(s).
McCarthy.CPA
Marty McCarthy, CPA, CCIFP
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MCC Construction Zone McCarthy & Company is Named Affiliate of the Year by the General Builders Contractors Association (GBCA)
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cCarthy & Company, PC, is pleased to announce that the General Builders Contractors Association (GBCA) has named the firm Affiliate of the Year. This prestigious honor was bestowed on November 18 during the 24th Annual Construction Excellence Awards (CEA), the premier construction awards program in the Philadelphia region. CEA recognizes excellence in construction and safety in more than twenty categories that showcase GBCA members' dedication to excellence.
The Affiliate of the Year award gives special recognition to an Affiliate member who played an integral role in the completion of a project. This Affiliate member demonstrates the true meaning of partnership and collaboration and goes above and beyond to contribute to the overall success of a project(s).
“We are honored to be named Affiliate of the Year,” says Martin C. McCarthy, CPA, CCIFP, and the firm’s managing partner. “As a firm that is focused on construction accounting, we understand that contractors are challenged by cash flow, bonding requirements, job costs, retainage, and having enough working capital to continue operating. Our proactive approach to client service has helped GBCA members overcome these challenges, so they are in the position to grow and prosper.” Construction Executive has included McCarthy & Company on its list of Top 50 Construction Accounting Firms™ for the past three years. The firm is active in several construction trade 17 | Page
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MCC Construction Zone associations including the Construction Financial Management Association (CFMA) and Counselors of Real Estate (CRE). Three of McCarthy & Company’s construction leaders hold the well-respected Certified Construction Industry Financial Professional (CCIFP) designation from the Institute of Certified Construction Industry Financial Professionals (ICCIFP). David Gibbs, CPA, CCIFP, CRE, MBA and partner-in-charge of the firm’s Real Estate Services Group was recently admitted as a Counselor of Real Estate (CRE®), one of the most respected real estate designations in the industry. Less than 1,000 professionals hold this prestigious designation worldwide. The General Builders Contractors Association (GBCA) works to advance commercial construction in the Philadelphia region by serving as a powerful voice, industry watchdog, and critical resource. GBCA provides more than 250 member companies with access to proven advocacy, networking opportunities, safety services, education, and training programs. Established in 1891, GBCA is the Philadelphia chapter of the Associated General Contractors of America (AGC).
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454 Germantown Pike ● Lafayette Hill, PA 19444 610.828.1900 (PA) ● 732.341.3893 (NJ) www.McCarthy.CPA
