If you build it, they will come--really, they will!

"There is virtually no stone we haven't overturned on a construction site."

This was the first thing we heard from Marty Waitz, Partner in Charge of the Construction Services Practice Group at Margolin, Winer & Evens LLP, Accountants and Business Advisors (MWE, Garden City and New York).

The first thing we felt from Marty was his palpable energy and enthusiasm for the construction industry.

As head of this specialized industry group, Marry manages a staff of experienced, highly skilled, and seasoned construction professionals. The group provides real estate owners, general contractors and sub-contractors unmatched expertise in virtually every aspect of construction management. From walking the job site to designing control systems, their focus is on helping clients bring projects to a successful completion on time, on budget and with maximum profitability.

According to Marty, "There is nothing 'virtual' in the construction industry--it is all very real. We get to work with clients as their dreams become reality. It is an extremely gratifying experience to be associated with projects as they go from being a plan to being a factory or an office tower. You would be surprised at the degree of involvement our team feels--I call it the 'pride of participation'."

We asked Marty what he thought about the state of the construction industry and the primary issues facing contractors. Marty's observation is that "since cash flow in the construction industry is project-driven and revenues are primarily fixed by contract, ensuring the ultimate realization of profitability is wholly dependent upon effective cost controls.

"Project costing should be based on careful estimating and job monitoring, coupled with constant cost-to-complete information from the field. Without the proper systems to identify potential trouble spots and track work order changes, the profitability margin on any job is at risk."

He further noted that with regulations such as 'pay when paid' cash flow is a critical concern for the GC and the Sub.

Marty's group devises systems that protect cash flow and preserve job profitability for clients. Through bimonthly or weekly forecasts comparing job progress against plans and work order changes, MWE helps close unforeseen or unnoticed gaps that interrupt liquidity. MWE also coordinates billing and receipts systems with the estimating and purchasing functions, and assists in negotiating reduced contract retainage terms.

Marty believes that the design and implementation of systems to keep projects moving smoothly is based on a thorough walk of the job site. Following a review of the project contract and verification of job status, MWE develops a plan of administration to reduce the probability of errors, cost overruns and scheduling problems.

The plan includes standards for documenting the scope of work, processing estimates, scheduling and monitoring work performed, and tracking work change orders and costs-to-complete.

MWE has become a 'one stop shop' for GCs and Subs and Marty believes that future success for the firm will require that they continue providing the full scope of value-added services.

"In addition to cash flow, budgeting, cost containment and job planning, we advise clients on financing, compliance and human resources, as well as general accounting and tax planning. In coordination with the Firm's highly respected Tax Department we apply advanced tax planning and financial strategies in multiple ways to enhance opportunities for our clients' profitability and growth."

There are even instances where Marty's group has helped contractors differentiate themselves to builders, by offering value-added services such as cost segregation studies. MWE prepares the requisitions and other documentation for the contractor to present to the builder that identifies additional depreciation opportunities. The service results in a win for all involved--contractor, builder and MWE.

"As you can tell," Marty adds, "There really is virtually no stone we haven't overturned on a construction site."

Marty has over 30 years experience in accounting and auditing. He provides clients with business and tax planning, acquisition reviews, sales negotiations, budgeting and forecasting, bank financing and loan structuring, merger and acquisition services, operational reviews, debt restructuring and systems design and analysis. His clients consist of family-owned and closely held businesses in a variety of industries including construction contractors, manufacturing/distribution, real estate owners/operators and developers.

Marty is a General Securities Representative with Series 7 and 66 registrations. He holds memberships in the American Institute of Certified Public Accountants (AICPA), New York State Society of Certified Public Accountants (NYSSCPA), Construction Financial Management Association (CFMA) and the National Association of Wholesalers.

Marty Waitz, Partner, Margolin, Winer & Evens LLP, Accountants and Business Advisors