TOP 10 CONSTRUCTION LEADERS
Sax LLP demonstrates commitment to the construction
industry as it expands and enhances its accounting, tax
and advisory services for New York/New Jersey
Over its 60-plus year history, Sax LLP has
tants Association). This, Luzaj says, helped to
grown into a leading accounting, tax and
increase all-around industry knowledge and al-
advisory firm serving the needs of closely-
lowed the practice’s advisors to keep their
held companies, family-owned businesses,
pulse on the market to identify trends and
high-net-worth individuals and not-for-profit
foresee upcoming challenges.

organizations throughout New York and
Sax, he says, also holds a strong emphasis
New Jersey. The firm’s success can be at-
on education and consistently provides team
tributed to the evolution of its in-depth,
members with the opportunities to increase
specialized knowledge in the construction,
their expertise and focus on the construction
real estate, manufacturing and distribution,
industry’s main issues such as project man-
healthcare and not-for-profit industries.

agement, risk management, and strategic suc-
Ermal Luzaj,
Ermal Luzaj, head of Sax’s Construction
cession planning.

Head of Sax's
Practice, says that Sax was initially a gener- Construction Practice
“Our advisors expanded their presence in
alist firm providing a wide range of tax and
surety and contractor specific associations
accounting services to clients from a vari-
which helped to develop professional relation-
ety of industries, but in the mid-80s,
ships in the industry that offered value-added
switched focuses and invested resources
resources to service offerings and became the
in training advisors in the specific indus-
backbone of the practice,” Luzaj said.

tries the firm served.

Sax’s construction advisors took on speak-
“The result was the creation of niche
ing engagements at industry associations and
groups within the firm that focused on thor-
built programs to benefit the industry from all
oughly understanding the nuances of each
sides, including: “How to Read a Contractor’s
specific sector and the unique rules and
Financial Statement”, tailored to bankers; and
Michael Curry,
challenges that apply to each,” he said.

“How to Increase Bonding Capacity”, specific
Partner-in-Charge of
“This allows our industry advisors to effec-
to contractors.

Sax's NYC office
tively identify solutions and proactively cap-
“Younger practice members are involved in
ture growth opportunities so our clients can be high
the industry associations from the bottom-up, and sev-
performing in their respective markets.”
eral advisors have held leadership positions within the
Sax’s rapidly growing construction practice is one of
leading New York construction associations which has
the firm’s largest niche groups. Luzaj said it was initi-
allowed the firm to leverage relationships while gaining
ated in 1984 when most firms serviced their contractor
access to valuable resources that propel clients for-
clients as they would any other client. “There was no
ward.” deep dive into the specific tax and accounting rules,
The practice began and continues to host “Industry
nor a thorough understanding of the challenges compa-
Update” events where industry professionals are in-
nies in the construction industry faced. We recognized
vited to hear from experts on relevant topics impacting
the room for improvement.”
the construction market. “Sax truly emerged as a
“Sax understood the construction market was
thought leader in the sector, and built a reputation as
unique and that there was no one-size-fits-all model for
more than average accountants, but as construction in-
servicing the market. We also understood the needs of
dustry experts.”
sureties who rely heavily on a CPA’s work product to
In 1993, Sax moved to expand the construction prac-
ensure their client’s success, and we realized the ne-
tice’s reach to New York after receiving an influx of re-
cessity in fostering those partnerships,” he added.

ferrals in the city. Michael Curry, partner-in-charge of
Consolidating its construction clients into Sax’s Con-
Sax’s NYC office, explained that this was largely due to
struction Practice, the firm then dedicated advisors and
the reputation the firm built on all sides of the industry
developed a consistent approach to servicing the in-
with contractors, surety agents, bankers and attorneys
dustry. The construction practice’s advisors supported
that carried over to other states. However, the firm ini-
industry associations like the AICPA (Association of In-
tially faced challenges with the expansion as the prac-
ternational Certified Professional Accountants), the
tice’s advisors found that many New York contractors
CFMA (Construction Financial Management Associa-
were more comfortable working with NYC accountants
tion) and CICPAC (Construction Industry CPAs/Consul-
instead of firms headquartered in New Jersey.

6 – WINTER 2018 — New York Construction Report



Curry says the firm persevered and eventually broke
through that barrier. “New York City’s construction mar-
ket was quite robust while New Jersey had been
slower to recover from the 2008 economic downturn.

Sax maximized on every opportunity given in the New
York market and demonstrated results and expertise
right out of the gate,” said Curry.

Today, the practice sees most new growth coming in
from Manhattan and the boroughs.

Sax’s Construction Practice assists emerging market,
large ENR 400, specialty, general and heavy/highway
contractors to effectively minimize tax liability and max-
imize their bonding capacity. Curry adds, “What sets
Sax’s construction practice apart from many other ac-
counting firms is the specialized services that include
internal control and organizational analysis; surety con-
sulting; benchmark studies; profit enhancement; state
and local tax advisory; business succession; and
wealth preservation planning.”
Sax aims to be its clients’ most trusted advisors, he
says, not just on the tax and accounting side but in all
areas of business. “Strong client relationships are built
on trust, a demonstrated understanding of clients’ busi-
nesses, and proven results through customized solu-
tions to meet their goals and objectives. Our advisors
take pride in being the first call their client’s make when
weighing an important decision, and they work to en-
hance their client’s growth and limit their risk at every
turn. This is an inherent mindset for the firm.”
Both Luzaj and Curry concur that the construction in-
dustry is very unique compared to other industries, and
has specific accounting rules that must be followed.

Revenue is recognized in a specific way, surety bonds
is a component, and there is a need for working rela-
tionships with surety agents, bankers and attorneys.

“Our advisors are well equipped and informed on the
specific nuances that apply to the construction indus-
try, and has formed long lasting relationships with in-
dustry professionals to best leverage resources and
opportunities,” said Luzaj.

“Economic cycles significantly impact the surety and
banking markets, and there have been ups and downs
through the decades that affect contractors,” Curry
says. “Our advisors have their feet firmly planted in the
industry, and are able to foresee potential obstacles
and guide clients in planning for downturns.”
Today, there is much change pending in the con-
struction industry, and Sax’s construction advisors are
assisting clients in addressing the new revenue recog-
nition procedures and planning for the impacts of the
new tax legislation introduced at the end of 2017.

When ripples to the market like this occur, Curry says
Sax’s main objective is to get out in front of the new
changes to inform and guide clients on the best meas-
ures forward, while identifying new opportunities that
may arise.

In 2016, Sax celebrated its 60th anniversary and in
Sax's 2017 Construction Industry Update event
2017, Sax LLP and Sax Wealth Advisors – Sax’s wealth
management arm – completed three acquisitions that
allowed the firm to expand to four offices between
New York and New Jersey. Sax Wealth Advisors also hit
more than $1 billion in assets under management
(AUM). In 2018, Sax’s Construction Practice will see some
exciting changes as the firm continues to expand its
New York presence and will be moving to a larger office
space in February: 551 Madison Avenue.

For more information on Sax LLP and its Construc-
tion Practice, please visit www.saxllp.com.

New York Construction Report — WINTER 2018 – 7