How James Moore Helps FDOT Contractors Unlock Financial Success

Successful road expansions, bridge repairs and infrastructure projects in Florida don’t just require skilled construction crews. They also demand a sophisticated approach to accounting and financial management.

For contractors working with the Florida Department of Transportation (FDOT), success depends on more than quality workmanship and efficient project management. To be eligible to work on these large-scale projects, construction companies must satisfy a unique set of financial and regulatory challenges.

Before working on these projects, companies must complete a complex prequalification process that scrutinizes their business’s financial health. Without this prequalification, contractors simply cannot bid on new projects as prime contractors — potentially cutting them off from their primary revenue stream. This isn’t a one-time activity either; FDOT requires contractors to meet specific metrics and submit financial statements each year.

For help with these demands, many construction companies turn to a CPA firm. And while many accounting firms can provide basic services, few possess the specialized knowledge, relationships and industry insights that FDOT contractors need.

At James Moore, our specialized construction accounting team delivers that knowledge. With five offices across Florida, deep expertise in the construction industry, and a proven track record advising FDOT contractors, our team provides far more than standard accounting services. They provide a pathway to financial compliance, strategic positioning and ongoing success in the competitive world of FDOT contracting.

In this overview, we’re shining a light on that expertise, sharing how we’ve built our solutions –– and our team –– to give FDOT contractors the best platform possible to be successful.

Understanding FDOT Prequalification Requirements and Common Challenges

Navigating the FDOT prequalification process requires specialized knowledge and careful attention to detail. Missteps here can have significant impacts on your business, causing contractors to miss out on potentially lucrative contracts.

The Prequalification Process Explained

If you want to bid on FDOT projects as a prime contractor, prequalification isn’t optional; it’s essential. The Florida Department of Transportation requires this process to ensure they’re awarding contracts to companies with the financial stability to complete projects without disruption, even when facing payment delays or unexpected challenges. To that end, the prequalification process evaluates your business’s financial standing, past project experience, technical capabilities and workforce.

The prequalification process involves submitting audited financial statements and specific FDOT forms that demonstrate the financial health of your construction business. While smaller contractors working on non-FDOT projects might only need a financial review for bonding purposes, FDOT work typically requires audited financial statements for any company bidding on projects valued at $1 million or more.

In addition to these audited financial statements, contractors are also required to submit a list of completed projects, including the scope, contract amount and an owner reference, as well as information about the company’s key employees and equipment.

If FDOT is satisfied with this information, they’ll issue a Certificate of Qualification that specifies your approved work classes (for instance, paving, grading, landscaping, etc.) as well as your maximum capacity rating (the value of FDOT contracts you are permitted to work on at any given time).

Critical Compliance Issues

While the above may sound relatively straightforward, successfully securing prime contractor status demands that your business take a sophisticated approach to financial management. James Moore regularly helps contractors work through several common challenges as they pursue prequalification.

Working Capital Requirements

One of the most critical metrics contractors must maintain is positive working capital; current assets must exceed current liabilities. This seemingly straightforward requirement can become problematic, especially toward year-end.

Take the hypothetical example of a construction company whose owners take significant distributions out of the company at year-end, driving the company’s assets down and threatening their ability to satisfy FDOT working capital requirements. In an instance like that, our team would work with management and FDOT contacts to explain the situation and explore what opportunities exist to satisfy financial requirements.

Financial Statement Presentation

Another key part of the prequalification process lies in securing audited financial statements. Part of this process involves scrutiny from FDOT over how assets are classified and described in financial statements. In some cases, certain asset classes may be discounted in FDOT’s evaluation of a contractor’s financial position.

At James Moore, we understand the nuance involved in this process and make sure to incorporate it in the financial statements our outsourced accounting professionals prepare for construction companies. If any asset classes are discounted, our team ensures it’s documented properly so it doesn’t cause a problem during prequalification.

Timing and Deadlines

Missing prequalification deadlines can be disastrous, as it prevents contractors from bidding on new work until the next qualification period. James Moore ensures clients meet these critical deadlines through careful planning and proactive communication.

Comprehensive Solutions: How James Moore Delivers Results for FDOT Contractors

When it comes to supporting FDOT contractors, James Moore’s approach goes far beyond the scope of traditional accounting services. Our professionals combine a wealth of industry expertise with a network of strategic relationships and a proactive approach to problem-solving that helps contractors not just comply with requirements, but thrive in the competitive FDOT contracting environment.

A Proactive Approach to Financial Planning

James Moore’s construction accounting professionals maintain valuable connections with FDOT officials that prove crucial when challenges arise. These relationships are about more than knowing the right people. They’re about understanding how to communicate effectively with the department to resolve issues quickly. Our goal is to help our clients stay ahead of the curve on issues like changes to funding programs or budgets.

The firm helps clients position themselves financially throughout the year, not just at audit time. By monitoring key metrics like working capital ratios and advising on financial decisions that could impact prequalification status, James Moore helps contractors avoid common issues before they become problems.

The team also stays informed about industry trends and potential funding changes. We closely monitor news in this area and are active members of the Florida Transportation Builders Association (FTBA). We stay educated on the issues that affect our clients and translate them into pragmatic solutions that help you move your business forward.

Value-Added Accounting & Advisory Services for Construction Companies

While assisting companies with the prequalification process is a key focus of our services for FDOT contractors, James Moore offers comprehensive expertise that extends well beyond compliance issues, including:

• Strategic tax planning tailored to construction companies, from year-end strategies to identifying and pursuing construction tax credits
• Assistance with securing and maintaining bonding capacity
• Outsourced construction accounting and fractional CFO services that ensure compliance and help companies drive growth
• Support with transition and succession planning
• Additional advisory solutions in areas such as HR and technology consulting
• Insights on upcoming infrastructure funding and project opportunities
• Support for new contractors entering the FDOT space, including helping them understand requirements for newly established companies

James Moore even assists contractors with advocacy when appropriate. For instance, when experienced professionals start new companies, FDOT typically requires several years of company history before granting prequalification. In these situations, James Moore can sometimes help make the case that the individual’s experience and the company’s funding should allow for earlier qualification.

For FDOT contractors, the real value in working with a firm like James Moore lies not just in the standard accounting and audit work, but in the additional guidance, relationships and industry knowledge that helps position them for sustained success in a challenging marketplace.

Building for Success with James Moore

The difference between struggling with FDOT compliance and smoothly navigating the prequalification process often comes down to having the right financial partner. At James Moore, our construction accountants and advisors bring specialized knowledge of the FDOT contracting landscape that helps construction businesses unlock strategic advantages.

What sets James Moore apart is the combination of technical expertise and relationship-driven service. While audit and tax work follows industry standards, it’s the additional guidance — anticipating issues, communicating effectively with FDOT officials, and finding creative solutions to complex problems — that enables contractors to unlock their full potential.

If you’re interested in partnering with James Moore’s FDOT accounting team, contact us today. We’re excited to learn more about how we can help your business.

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.