In today’s fast-paced construction industry, the role of the Chief Financial Officer (CFO) is pivotal to a company's success. As the industry faces complex financial landscapes and high-stakes projects, hiring a CFO with the right qualifications can make all the difference.
A CFO in the construction industry must possess a blend of financial expertise, strategic vision, and industry-specific knowledge. These professionals are not just number crunchers; they are key players in guiding the company through financial planning, risk management, and strategic decision-making.
With the right expertise, a CFO can help streamline operations, improve profitability, and navigate the complexities of construction projects. These are our top five must-have qualifications to look for when hiring a CFO for your construction company:
1. Seek a Chief Financial Officer with construction industry experience, specifically.
It may be difficult to find a CFO who has a specific background in the construction business, however, seeking a candidate with on-the-job or past financial support experience in the sector will set them apart from the competition, instantly.
From managing cash flow and securing funding to estimating project costs and mitigating risks, the role requires a comprehensive skill set tailored to construction. If this applicant already understands the unique challenges and goals of your industry, it’s essentially a two-for-one deal. You’ll be getting someone who not only knows their job responsibilities but also knows how your operations function.
2. A construction company CFO needs to be a strong estimator and understand risk management to monitor a job’s profitability.
While you may expect your project manager, contractors, or professional estimators to understand the exact scope of the construction project, having a CFO who knows the true cost, timelines, and challenges of typical construction work is a clear advantage.
Estimating a job’s cost is not just about calculating the supplies, labor force, and accounting itself. An ideal CFO can also forecast and manage financial risks to protect the company from unexpected expenses and market fluctuations. Accurate cost estimation is crucial for project profitability and financial stability and a CFO in the construction field must be able to identify and mitigate potential financial risks, ensuring projects stay within budget and deadlines.
Ask yourself if the candidate for CFO can handle being involved in the bid process and working directly with operations. Can your CFO help manage inventory and evaluate each project thoroughly for efficiency? The best CFOs in construction companies participate in the operational bidding processes.
A great interview question while screening a CFO for your construction company might be, “Tell me about a time the profitability of a job was at risk and how you saved the project from bleeding money?”
3. Your CFO hire must be able to think strategically and not solely stick to financials.
A true value-adding CFO is a leader who not only possesses strong technical and accounting skills but who can also use these skills to clearly communicate highly evolved financial data and concepts to non-financial construction employees and management. The right candidate will also be able to translate data into actionable decisions and recommend solutions that will drive revenue for the business.
A strong CFO must also be a jack of all trades: a gatekeeper of financial matters, a cheerleader for the finance team and the entire organization, a good communicator both inside and outside the company, and a strategic visionary. They’re a true leader who can help move the company forward and position it for long-term success.
4. Look for a CFO who is a team player.
Some CFOs are isolated from other areas of the business or considered a necessary but unimportant function of the business. Your company should expect the CFO to be part of the executive team and look to hire folks who have a track record of creating and implementing strategy.
The most qualified CFOs have the ability to foresee many serious business challenges and opportunities. A construction company CFO often plays multiple roles, including steward of the company's assets and strategist in the use of funds and credit. During your interview, be sure to ask specific questions relating to teamwork and culture to find the right candidate. For example, ask the candidate to, “Describe a time when you had to collaborate with the construction crew to work towards a solution.”
Additionally, try to see how they would interact with relationships you have outside your company. The best CFOs are easily able to lead the relationships with the banking community, the audit team, insurance providers, and legal counsel.
5. Hire a CFO with resilience in the face of challenges.
You know that the construction industry is inherently volatile, often encountering unexpected delays, cost overruns, and regulatory changes. Beyond everyday stresses on the construction site, a CFO has to plan for ESG, manage supply chain disruptions, and juggle a long list of common challenges.
A resilient CFO can navigate these obstacles with a steady hand, ensuring financial stability and strategic adaptability. During the interview process, be sure to dig deep into how they’ve reacted to past challenges to look for an enduring, positive addition to your team. Posing an open-ended question about how they dealt with a construction financial issue is a great place to start.
Retained Executive Search Services from Kreischer Miller
By identifying the top qualifications, you can ensure that your CFO is well-prepared to lead your company toward sustained financial health and growth.
Having trouble finding the right fit for the role? Let us help.
Our Retained Executive Search practice takes a highly personalized approach to recruiting and collaborates with our construction industry experts to assist reputable companies within the construction industry with hiring.
Interested in learning more about our Retained Executive Search services for the Construction Industry? Check out this recent interview where Kreischer Miller’s Carlo Ferri, CPA, Director, Tax Strategies and Construction Industry Group Co-Leader chats with Adam Berman, Director-in-Charge, Retained Executive Search about employment-related trends Adam is seeing in the construction industry - specifically regarding bonuses and compensation.
Contact us to learn more today.