What are the real downsides of ESOPs that construction business owners rarely hear about?

In this episode, Mason Brady and John Bencosme flip the script from Part 1 and dive deep into the cons of ESOPs — covering upfront costs and administrative burden, the financial reporting and valuation requirements that catch owners off guard, the legal and integrity risks that come with having employee shareholders, how to think about ESOP debt and conservative valuations, and whether an ESOP makes sense when there's no other exit option available.

Topics We Cover

00:00 — Intro and Part 1 recap

01:11 — John's background and why the cons matter

04:01 — Unavoidable costs: fees, complexity, and admin burden

08:26 — Financial reporting: audits, valuations, and forecasting

11:53 — Losing the personal guarantee

13:20 — Budgeting, forecasting, and valuation risk

16:54 — Employee shareholder lawsuits

19:43 — Integrity requirements and DOL accountability

22:36 — Should you ESOP if no other buyer exists?

27:14 — ESOP debt and conservative valuations

33:55 — Warrants as a risk management tool

37:41 — Final takeaways from John

Links & Resources

Brady CFO — Fractional CFO Services for Construction: https://bradycfo.com/

🏢 ESOP One — ESOP Advisory Services: https://www.esopone.com/

🤝 Connect with John Bencosme: https://www.linkedin.com/in/john-b-84a64b1b2/

🎤 Connect with Mason Brady: https://www.linkedin.com/in/masonbrady/?skipRedirect=true

Built to Scale is the podcast for construction business owners who want to scale — not just grow. Every episode brings you real financial strategy and business advice built specifically for the construction industry.

Follow, rate, review, and share.

Questions or topic ideas? Reach out at [email protected]

#constructionbusiness #constructionfinance #constructionwork #esop #wealthmanagement 

What's the smartest exit strategy for construction business owners who don't want to sell to private equity?

In this episode, Mason Brady and John Bencosme cover the tax advantages of ESOPs for construction business owners, including how a 100% S-Corp ESOP can eliminate federal income tax, how to defer capital gains through installment structures, the difference between seller financing and bank financing, partial vs. full ESOPs, and why some construction owners choose ESOPs over private equity to protect their employees and preserve company culture.

Topics We Cover

00:00 — What is an ESOP and why is it gaining traction in construction

05:00 — The exit strategy problem: why construction businesses are hard to sell

08:30 — Tax advantages of ESOPs and how to defer capital gains

12:00 — S-Corp structure and entity design for maximum tax benefit

27:00 — Partial vs. full ESOPs and financing options

33:00 — Warrants, synthetic equity and how owners get paid back

Links & Resources

Brady CFO — Fractional CFO Services for Construction: https://bradycfo.com/

🤝 Connect with John Bencosme: https://www.linkedin.com/in/john-b-84a64b1b2/

🎤️ Connect with Mason Brady: https://www.linkedin.com/in/masonbrady/?skipRedirect=true

Built to Scale is the podcast for construction business owners who want to scale — not just grow. Every episode brings you real financial strategy and business advice built specifically for the construction industry. Follow, rate, review, and share.

Questions or topic ideas? Reach out at [email protected]

Is your construction business exposed to state and local tax liabilities you don’t even know about?

Mason Brady sat down with Robin Klinghagen, Managing Director at Andersen, a 30-year state and local tax veteran, to break down exactly what construction business owners need to understand about tax compliance — especially if they’re operating in multiple states or thinking about expanding.

Topics We Cover

• 00:00 - Meet Robin Klinghagen and what SALT actually covers

•  04:15 - What’s really at risk for construction business owners who aren’t compliant

• 05:13 - The one-week rule: how working in another state can create tax nexus

• 08:45 - Why your contracts determine your entire tax treatment

• 11:53 - Texas deep dive: lump sum vs. time and material, new construction vs. repair and maintenance

• 12:06 - Why subcontractors follow their own rules and what that means for GCs

• 15:59 - The real story: a rail yard in Louisiana that nearly cost a client millions

• 17:24 - Why your local CPA probably isn’t equipped for SALT

• 20:09 - How to set up your team and systems to stay compliant as you scale

• 23:45 - The upside: tax credits and incentives most contractors never find

Links & Resources

Andersen | State & Local Tax Services

Brady CFO | Fractional CFO Services for Construction

🤝 Connect with Robin Klinghagen

🎤️ Connect with Mason Brady

Built to Scale is the podcast for construction business owners who want to scale — not just grow.

Every episode brings you real financial strategy and business advice built specifically for the construction industry.

Follow, rate, review, and share.

Questions or topic ideas? Reach out at [email protected]

Are AI and automation the answer to your construction team challenges?

Mason Brady sat down with Kendall Pouland, founder of Build Better Ways and construction operations consultant with over 20 years in the industry, to break down exactly how to build the systems, SOPs, and talent strategies that let your construction business execute at a high level without you being in the middle of everything.

Topics We Cover

00:00 - Meet Kendall Pouland and what is Build Better Ways

04:33 - Training gaps, consistency and tribal knowledge in construction

10:36 - Why the owner is usually the bottleneck and how to fix it

14:43 - SOPs that work: the SOP vs. the training guide

22:07 - The top 4 processes to fix first: startup, change orders, closeout and scheduling

24:40 - The playbook strategy that makes your team actually use your SOPs

30:09 - AI and automation for construction: real use cases and data integrity

40:09 - Talent optimization: skills matrices and quarterly reviews

Links & Resources

• Build Better Ways: https://www.buildbetterways.com/

• Brady CFO — Fractional CFO Services for Construction Companies :https://bradycfo.com/

• 🤝 Connect with Kendall Pouland: https://www.linkedin.com/in/kendall-pouland/

• 🎤️ Connect with Mason Brady: https://www.linkedin.com/in/masonbrady/ B

Built to Scale is the podcast for construction business owners who want to scale — not just grow.

Every episode brings you real financial strategy and business advice built specifically for the construction industry. Follow, rate, review, and share.

Questions or topic ideas? Reach out at [email protected]

#constructionbusiness #constructionchannel #constructionmanagement #constructionsystems #aiinconstruction

You’re making money. But is your construction business actually building wealth?

The truth is, most construction business owners have 70% to 80% of their wealth tied up in their business with no real plan for what happens when they can’t or don’t want to run it anymore. Mason Brady sat down with Jason Lee, vice president and wealth advisor at Exponent Prosperity Accelerator Advisors in Houston, to break down what true wealth planning actually looks like for construction business owners.

This episode is for you if you’re a construction business owner who is making money but isn’t sure what to do with it, hasn’t thought seriously about exit planning, or wants to understand how to build real, lasting wealth, not just a business that pays the bills.

Topics We Cover

• 00:00  - Why most contractors don’t have a real wealth manager

• 05:00  - Closing the wealth gap: the $7–10M number every owner needs to know

• 10:00 -  Lifestyle business vs. legacy business

• 15:00  - Frankenstein planning and why it backfires

• 20:00  - The J-curve and when to start planning

• 25:00  - The advisor board every construction owner needs

• 30:00  - Why your tax strategy might be costing you millions

• 35:00  - Construction as a wealth vehicle and the reality of GC margins

Links & Resources

• Exponent Prosperity Advisors: https://exponentx.net/ 

• Brady CFO: https://bradycfo.com/ 

• 🤝 Connect with Jason Lee: https://www.linkedin.com/in/jasonleeexponent/ 

• 🎤️ Connect with Mason Brady: https://www.linkedin.com/in/masonbrady/ 

Your software vendor promises a smooth implementation.

So why do so many construction companies end up with a $70K mistake and a team ready to quit?

In this episode of Built to Scale, Mason is joined by Bryan Burkholder, founder of Cadence and a specialist in ERP implementation and change management for construction and lower middle market businesses. Bryan breaks down why so many technology implementations go off the rails and what companies between $10M and $100M in revenue can do to make sure their next systems upgrade actually delivers the ROI they were promised. From the real cost of skipping change management, to the chicken-and-egg question of fixing your books before or after going live, to why AI is about to force every construction business to rethink their entire tech stack. 

Topics We Cover

00:00 - Why SaaS implementation teams aren’t enough and what’s missing from every software rollout

05:34 - A real $70K Sage implementation nightmare and what Brady CFO walked into

11:07 - The ROI of systems upgrades: scalability, visibility, and revenue per FTE

17:29 - Chicken or egg: fix broken accounting first, or implement the ERP?

•      22:26 - Why technology upgrades are a continuous evolution, not a one-time event

•      24:56 - The role of a fractional CIO and why your “techie guy” isn’t the answer

•      32:40 - AI, agentic tools, and why garbage in still means garbage out

Links & Resources

•      Cadence — ERP Implementation & Change Management: https://cadenceconsultants.com/ 

•      Brady CFO — Fractional CFO Services for Construction: https://bradycfo.com/

•      🤝 Connect with Bryan Burkholder: https://www.linkedin.com/in/bryanburkholder1/ 

•      🎤️ Connect with Mason Brady: https://www.linkedin.com/in/masonbrady/ 

Built to Scale is the podcast for construction business owners who want to scale — not just grow. Every episode brings you real financial strategy and business advice built specifically for the construction industry.

Follow, rate, review, and share.

Questions or topic ideas? Reach out at [email protected]

Should your construction company pursue government contracts or avoid them altogether?

In this episode of Built to Scale, Mason Brady sits down with Karla Talisee, government contracting specialist and founder of So She Builds, to break down how construction companies can successfully enter public works without damaging cash flow, compliance, or profitability.

Topics We Cover

(0:00) – Why construction companies consider government contracts

(6:07) – Should public work be diversified or your main focus?

(9:03) – Federal vs state vs local contracts explained

(13:42) – Mentor-protégé programs and how they actually help

(17:36) – Certified payroll and prevailing wage realities

(21:30) – Biggest government opportunities in 2026

(24:26) – What it takes to become GovCon ready

(30:15) – The three steps to start bidding on public projects

Links & Resources

So She Builds: https://soshebuilds.com  

Brady CFO: https://bradycfo.com/ – Fractional CFO services for construction companies

🤝 Connect with Karla: https://www.linkedin.com/in/karlatalisse/ 

🎙️ Connect with Mason: https://www.linkedin.com/in/masonbrady/

If you’re a construction business owner looking to diversify revenue, strengthen compliance, and pursue public contracts the right way, be sure to follow, rate, review, and share Built to Scale so more contractors can scale smarter and grow sustainably.

And if you have questions or topics you’d like us to cover, reach out to [email protected] 

What has to change before a construction business can scale without breaking?

In this episode of Built to Scale, Mason Brady sits down with Jerry Aliberti, executive coach and operations consultant at Pro-Accel, to break down what actually fails when construction businesses try to grow. They explore why scaling exposes leadership gaps, weak planning, misaligned roles, and breakdowns between estimating and execution, and how owners often become the biggest constraint without realizing it.

Topics We Cover

(0:00) – Why growth exposes bottlenecks in construction companies

(4:30) – The estimating-to-execution gap that erodes profit

(8:30) – How owners unintentionally become the biggest constraint

(12:25) – What construction companies must have in place before scaling

(18:53) – Hiring for the next phase instead of today’s problems

(29:30) – Why systems and SOPs fail without the right people

(40:20) – The planning mistakes that break margins as companies grow

Links & ResourcesPro-Accel: https://www.pro-sl.com

Brady CFO: https://bradycfo.com/ Fractional CFO services for construction companies  

🤝 Connect with Jerry: https://www.linkedin.com/in/jerry-aliberti/ 

🎙️ Connect with Mason: https://www.linkedin.com/in/masonbrady/

If you’re a construction owner and want clearer numbers and guidance on how to scale your business, be sure to follow, rate, review, and share Built to Scale so more contractors can learn to grow smarter and scale with confidence.

And if you’ve got questions, ideas for future episodes, or topics you want us to dive into, reach out to us at [email protected]

Should contractors expand into real estate development or can it put their core business at risk?

In this episode of Built to Scale, Mason Brady and Rachel Glock break down when it actually makes sense for contractors looking to get their feet wet in real estate development. They explore the cash management, financing risks, and liquidity requirements that contractors often underestimate, along with the planning needed to ensure development strengthens, not jeopardizes, the core construction business.

Topics We Cover

• 0:00 – Why contractors are drawn to real estate development

• 2:23 – The entrepreneurial mindset and leveraging construction expertise

• 5:33 – The biggest risks contractors underestimate as developers

• 9:08 – Why cash management is critical in real estate development

• 13:07 – How much liquidity a construction business needs before investing

• 18:05 – Financing risks, equity requirements, and stress testing assumptions

• 23:39 – How contractors can prepare now for future development projects
  

Links & Resources

• HUD 221(d)(4) Program – Non-recourse financing option for new multifamily development: https://hud221d4.loan/

• Brady CFO – Fractional CFO services for construction companies: https://bradycfo.com/

🤝 Connect with Rachel: https://www.linkedin.com/in/rachel-glock-23090a74/ 

🎙️ Connect with Mason: https://www.linkedin.com/in/masonbrady/ 

If you’re a construction owner and want better clarity around your numbers and how to scale your business, be sure to follow, rate, review, and share Built to Scale so more contractors can learn how to grow smarter and scale with confidence.

And if you’ve got questions, ideas for future episodes, or topics you want us to dive into, reach out to us at [email protected]

When was the last time you finished a job and actually knew if you made money?

Many construction owners rely on cash in the bank or billing activity to judge performance. 

The problem? Cash flow does not equal profit. In this episode, Mason Brady sits down with Rachel Glock, construction finance expert and fractional CFO of Brady CFO, to explain why cash basis accounting often hides real job profitability and how accrual accounting and WIP (Work In Progress) reports give owners the financial visibility they actually need.

Topics We Cover

0:00 – Why Construction Owners Struggle to Know Job Profitability

2:27 – Cash vs Accrual Accounting Explained for Construction

4:15 – What a WIP Report Is and Why It Matters

7:29 – Why Bankers and Sureties Require Accrual Financials

9:28 – When Cash Basis Accounting Still Makes Sense

13:45 – Key Triggers for Switching to Accrual Accounting

17:51 – What’s Involved in Moving from Cash to Accrual

20:00 – Accrual Reporting vs Cash-Basis Taxes

24:34 – When to Bring in a Fractional CFO or Financial Advisor

🤝 Connect with Rachel: https://www.linkedin.com/in/rachel-glock-23090a74/ 

🎙️ Connect with Mason: https://www.linkedin.com/in/masonbrady/ 

If you’re a construction owner and want better clarity around your numbers and how to scale your business, make sure you’re following the podcast.

And if you’ve got questions, ideas for future episodes, or topics you want us to dive into, reach out to us at [email protected]