CFOs are at the heart of business evolution and growth, taking on a greater strategic and operational role within construction companies. Industrial challenges, such as attracting new talent and rising material costs, have made CFOs some of the most sought-after leadership professionals within the construction industry.
CFO Capital is the UK’s leading recruitment agency for Chief Financial Officers, connecting start-ups, SMEs, and scaling construction companies with CFOs across the UK. Our talent pool of specialist construction CFOs are available for immediate starts on a part-time, full-time, interim, and remote basis.
We pride ourselves on offering a 360-degree approach to recruiting through both traditional recruitment methods and headhunting, taking a relationship-orientated approach that starts by identifying the specific needs of your construction company. Start your search for a construction CFO today by contacting our team at recruitment@CFOcapital.co.uk or by calling us on 020 3287 9501 for a no-obligation consultation
Construction Company CFO
A construction company Chief Financial Officer (CFO) is responsible for the organisation’s financial management. It is their responsibility to monitor, oversee, and report on the company’s finances, including producing accurate financial statements and utilising forecasting to support better decision making. An CFO will oversee the construction company’s finance department or be responsible for its day-to-day accounting if it does not have a large-scale department.
Construction CFOs will track and monitor project budgets to ensure adequate cash flow throughout the company. They’re responsible for ensuring that the company is financially healthy and may invest in AI and automation to streamline data analysing and forecasting.
These CFOs have industry-specific tasks, including monitoring and overseeing accounts receivable collections to ensure that any outstanding invoices are paid. Construction CFOs are involved in determining whether a customer should be sent to bond claims or collections if their invoice is outstanding for a significant time.
Construction companies can tailor the role of CFO to suit the specific needs of their company, including addressing any existing skills gap in the company. A CEO may also recruit a construction company CFO to oversee future development, including mergers and acquisitions or entering new client niches.
About FD Capital Recruitment – your Finance Director and CFO specialists.
Formed in 2018 FD Capital Recruitment was founded with the objective of becoming a leading provider of Finance Directors and CFO’s. We regularly recruit senior finance positions for the construction sector.
We offer three solutions :-
Part-Time FD’s and CFO’s our idea being to bring the skills and experience that finance directors have gained in larger corporates and plc’s and make them available to SME’s on fractional time basis.
Interim FD’s and CFO’s available for short term assignments
Full Time FD’s and CFO’s – we’ll find the perfect senior financial professional for your business and its requirements.
We have grown and grown and had our busiest year so far in 2020 with some of our team working six days per week. Many of our team and most of our candidates are ICAEW qualified. See more of the areas covered by FD capital here.
Our main offices are based in Great Portland Street, London.
Why You Should Recruit a Part-Time Construction CFO
Not every construction company has the finances nor the workload for a full-time construction Chief Financial Officer. Many are choosing to recruit their construction CFO on a part-time basis as a more affordable way to access financial expertise while having the option to develop the role as the company grows.
There are three main reasons why a part-time construction CFO could be the solution for your company’s accounting and financial strategy needs:
Provide Financial Strategy
A part-time construction CFO will provide your company with a financial strategy and direction, particularly if your company does not have an existing financial department.
An CFO will help your construction company navigate complicated financial situations, whether it’s overhauling financial systems or ensuring adequate cash flow as material costs continue to rise.
Part-time construction CFOs offer a fresh perspective on the company’s financial situation and strategy – without needing to work full-time. Recruiting a part-time construction CFO will free up the time of the other management leaders to boost productivity and fill a skills gap.
Cost-Effective Option for Construction CFOs
A part-time CFO is a cost-effective option for construction companies in need of financial guidance but who don’t have the capital or workload for a full-time position. These senior financial executives are more accessible than ever for construction companies at every stage of their development.
The construction industry has been navigating the economic turmoil, a skills shortage, and growing regulatory requirements in recent years. A part-time CFO is an investment that pays for itself for construction companies.
Part-time construction CFOs bring flexibility and the best way to recruit affordably – whether on an 8-hour or 3-day contract. Starting by recruiting a part-time construction CFO enables the company to expand the role as their organisation grows.
No Long-Term Commitment
A Chief Financial Officer is one of the most senior employees in a construction company. The CEO and C-suite team will want to recruit an CFO who will fit into the company culture and bring a fresh approach to the organisation. Recruiting a part-time CFO means that there is no long-term commitment if a fixed-term contract is put in place initially.
Construction companies may choose to recruit an interim CFO to oversee a specific project, such as fundraising, debt refinancing and financial restructuring. A company may choose to recruit an interim CFO to navigate tricky economic circumstances or to assist the company during a growth period.
Recruiting a Finance Director for your business
Do you need help understanding and planning your business’ finance?
Call us today on 020 3287 9501. We can help recruit a part-time London Finance Director to help your business long term. FD Capital is also available to assist with grant programmes, along with recruiting a Finance Director in the surrounding M25 area, and the West Midlands.
Role of a Construction Chief Financial Officer
Construction companies can choose to define the role of Chief Financial Officer to suit their specific needs. However, there are several roles that CFO will play in future-proofing their construction company and ensuring its financial health.
- Building Financial Credibility
Recruiting an CFO provides construction companies with greater credibility for traditional financial institutions and with potential investors. An CFO is a ‘safe pair of hands’ to oversee the company’s finances and reduces the risk of negative cash flow or poor financial planning. Stakeholders will turn to the CFO to provide an unbiased view of the company’s financial health while acting as a bridge between the company leadership and third parties.
Smaller construction companies will rely on CFOs to advocate on their behalf with traditional financial institutions. CFOs can nurture relationships with banks that make it easier to access loans and additional funds on better terms – it’s a vital partnership for construction companies that may find themselves experiencing cash flow difficulties mid-project or when clients default on payments.
- Boosting Company Profitability
A construction CFO will implement financial systems and an overarching strategy that builds financial resilience to future-proof the company and make it easier to navigate cash flow issues and economic uncertainty. An CFO will identify and communicate financial risks and mitigate them, while also working to optimise the company’s profits.
CFOs will track the profitability and performance of their construction company by creating key performance indicators (KPIs) to provide real-time insights.
Construction companies commonly recruit part-time or interim CFOs to investigate financial problems, conduct internal audits, and oversee debt refinancing. An CFO is an investment that will deliver a high yield return in the form of financial systems and strategies that lead to value creation and increased profitability.
The day-to-day activities of an CFO focus heavily on the company’s financial health and accounting. A construction CFO will typically oversee the financial department, including cash flow, payroll decisions and regular auditing of company finances to free up the time of other management leaders.
- Provide Forward Thinking
A construction company CFO brings a fresh perspective to your company, including its short-term direction, mission, and financial management.
These financial professionals will form a partnership with the CEO and senior management, acting as business strategists and financial advisors. CFOs will put financial systems and structures in place to promote better decision making and provide the company with a long-term focus through data analysis.
Construction CFOs are industry experts with their finger on the pulse, identifying opportunities for growth and expansion while considering potential regulatory changes and market instability.
- Accelerating Company Growth
Forecasting and strategy are two ways a construction CFO supports company growth. CFOs are increasingly investing in AI and automation to support data analysis and provide real-time insights, particularly for construction companies working on complicated projects or across multiple sites. Construction companies can accelerate their growth by becoming more efficient and leaner by identifying potential areas of underperformance with the help of an CFO.
CFOs work in close unison with construction company CEOs, providing them with data and insights to support their decision-making process. They’ll offer advice on a wide range of issues, from adapting forecasting to account for changing industry behaviour or exploring potential mergers and acquisitions.
Most construction companies will begin exploring the option of recruiting an CFO when they’re preparing to expand their business or experiencing rapid growth.
- Overseeing Mergers and Acquisitions
A construction company will want to recruit a specialist CFO if they’re preparing for a merger and acquisition. CFOs are required on both sides of the transaction to ensure the company is prepared to enter its next stage and that there is accurate financial reporting.
An CFO will prepare the construction company’s accounts before the M&A to provide the most accurate valuation. Most CFOs will oversee the M&A process either by themselves or in partnership with the CFO if the construction company has one in place. It’s their responsibility to ensure that all regulatory requirements are met and to lead on risk management throughout the deal.
Construction companies with an CFO in place are more likely to have a positive experience during the M&A process and a smoother transition as the right systems and structures will already be in place.
Why Your Construction Company Needs a Chief Financial Officer
Every construction company can benefit from having a Chief Financial Officer on board, whether they need to restructure their financial systems or are preparing to navigate economic hardship.
Here are four reasons why your company needs a construction Chief Financial Officer:
- Balancing the Books
Working capital is vital for construction companies. CFOs must keep tight control over the cash management of construction companies to prevent a shortfall if invoices are defaulted on or material and labour costs unexpectedly rise.
CFOs will seek to streamline expenditures and analyses outputs to identify potential savings. Construction CFOs will identify where potential cuts can be made if required to increase cash flow. Identifying potential cost-saving areas can help preserve a construction company’s long-term investments, particularly during a recession.
Common areas where CFOs will seek to reduce costs include compensation, procurement, and overheads. Construction companies are not able to take advantage of remote or hybrid working to reduce costs the way other industries have been. CFOs must think outside the box when trying to balance the books.
Cash flow is crucial for companies in the financial sector with an CFO being vital to balancing the books.
- Navigating Tough Economic Circumstances
Construction companies can prepare for economic uncertainty and navigate the cost of living crisis by recruiting an CFO to oversee crisis planning. CFOs will develop scenario planning to prepare the company for potential economic and supply-chain disruption. A specialist construction CFO will be in-tune with the industry and its current challenges.
Navigating the current economic circumstances and industry challenges requires the CFO to develop a ‘war room’ mentality by building relationships within the company. They’ll work closely with each department to understand every aspect of the business to ensure risk management, due diligence, and adequate cash flow.
- Crisis Planning
More construction companies are choosing to respond to current economic turbulence by recruiting CFOs to oversee crisis planning. The construction industry is dealing with several specific challenges, including talent retention, a skills shortage, and supply chain issues. CFOs will develop scenario planning to prepare the company for economic and industrial disruption. They will also consider company-specific risks, such as changing consumer behaviour, and cash flow as part of their contingency planning.
- Survival Strategy
Developing a survival strategy is vital for companies within the construction sector. CFOs will consider all possible scenarios, including liquidity management. They’ll manage internal and external risks, including industry-specific factors by analysing industry-wide performance and risk factors.
CFOs will identify ways of obtaining access to short-term funding if required, usually by building relationships with financial institutions and industry leaders for better trading terms. A construction CFO’s risk management strategy will account for factors such as non-payment and project disruption, which may not be present in other industries.
Recruit a Construction Chief Financial Officer Today
CFO Capital is the UK’s leading financial recruitment agency, connecting start-ups and SMEs with CFOs who have experience working within the construction industry. Our talent pool includes senior financial executives who are available to work on a part-time, full-time, and interim basis, both in-house and remotely.
Our leadership team consists of entrepreneurs, consultants, and financial executives. Our team will curate the recruitment process to suit the needs of your construction business, whether you utilise our headhunting services or traditional recruitment service.
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