Construction Financial Management Association

Construction Financial Management Association
Name	Construction Financial Management Association
Abbreviation	CFMA
Formation	1981
Type	Professional association
Headquarters	Houston, Texas
Region served	United States, Canada
Membership	Construction financial professionals

Construction Financial Management Association is a professional association for financial professionals working in the construction industry. The organization connects executives, controllers, accountants, risk managers, and chief financial officers with resources for financial reporting, risk mitigation, bonding, and taxation. It serves as a nexus among construction companies, sureties, lenders, insurers, and consulting firms.

History

Founded in 1981, the association emerged amid rising complexities in project financing during the late 20th century and the aftermath of landmark developments such as the Deregulation of the Airline Industry Act era fiscal shifts and the expansion of Commercial construction markets. Early leaders included executives drawn from regional contractors and national sureties such as Travelers Companies and The Hartford Financial Services Group. The organization expanded through the 1990s alongside growth in Commercial real estate and the aftermath of events like the Savings and Loan crisis that reshaped construction lending. In the 2000s, CFMA responded to regulatory changes triggered by legislation such as the Sarbanes–Oxley Act of 2002 and to market shocks from the 2008 financial crisis, prompting focus on internal controls, bonding capacity, and bankruptcy risk. Recent decades saw partnerships with academic institutions and professional bodies like American Institute of Certified Public Accountants, Association of General Contractors of America, and international trade groups as construction markets globalized.

Mission and Activities

The association’s mission centers on advancing financial management best practices for practitioners in heavy civil, building, specialty trade, and infrastructure sectors. Its activities include producing guidance on accounting standards promulgated by bodies like the Financial Accounting Standards Board and providing commentary relevant to Internal Revenue Service tax treatments for construction contracts. The organization engages with surety markets represented by firms such as Liberty Mutual and Zurich Insurance Group and with lender communities including regional banks and multinational institutions like JPMorgan Chase. It advocates for members on legislative and regulatory matters involving tax law, payment bond statutes such as state-level Mechanic's lien frameworks, and claims resolution influenced by case law from federal courts including the United States Court of Appeals for the Fifth Circuit.

Membership and Chapters

Membership draws professionals from contractor firms ranging from local builders to national general contractors like Bechtel and Fluor Corporation, as well as subcontractors, surety underwriters, bond producers, accountants, and software vendors. The association operates a chapter system with regional chapters across the United States and Canada, modeled after professional networks such as Institute of Management Accountants chapters and similar to trade group geographic units like Associated Builders and Contractors state chapters. Chapters host local programming, networking events, and job boards connecting members to opportunities at firms such as Skanska USA and Turner Construction Company.

Education and Certification

The association provides educational curricula addressing construction-specific accounting topics including percentage-of-completion methods, change-order documentation, and retainage practices. Training aligns with credentialing frameworks exemplified by the Certified Public Accountant and specialized certifications analogous to industry designations like the Project Management Professional offered by Project Management Institute. It administers a proprietary credential for construction financial professionals, offering study materials, exam preparation, and continuing professional development that dovetails with employer needs at construction firms and with compliance expectations from entities such as the Securities and Exchange Commission when public companies with construction operations report financials.

Events and Publications

CFMA convenes conferences, regional meetings, and webinars that attract attendees from major firms, surety houses, and advisory firms including Deloitte, Ernst & Young, and KPMG. Annual conventions feature sessions on risk management, technology adoption such as construction accounting software by vendors like Sage Group and Viewpoint, and panels on dispute resolution involving construction law firms and arbitration bodies like the American Arbitration Association. Its publications include white papers, benchmarking surveys, and a professional magazine offering case studies, analysis of standards from Financial Accounting Standards Board, and coverage of judicial decisions affecting contracting and payment practices.

Governance and Leadership

Governance follows a volunteer board model common among professional societies such as the American Bar Association and Institute of Electrical and Electronics Engineers, with an elected board of directors, regional chapter leadership, and an executive staff based at the headquarters in Houston. Leadership has included finance executives drawn from public and private construction firms and allied service providers, with committees focused on education, membership, advocacy, and technical standards liaison with agencies like the Internal Revenue Service and standard setters such as the Financial Accounting Standards Board.

Category:Professional associations