EP3 - Construction Industry Spotlight: Interview with Joe Jones, Audit Partner at Berman Hopkins

In this episode, Makenzie Wirth interviews Joe Jones, Audit Partner at Berman Hopkins. As lead of the firm’s Construction Advisory Services Team, Joe shares his perspective on the recent trend of construction companies transitioning ownership to ESOPs. From audit considerations, valuation risks, bonding, backlog quality, governance, and jobsite culture, Makenzie and Joe provide practical advice for construction owners considering employee ownership.

Listen to this episode to understand how ESOPs impact construction businesses and get actionable guidance for your company’s transition.

Transcript

H1: Construction Industry Spotlight Interview with Joe Jones, Audit Partner at Berman Hopkins

Audit, Bonding, Culture, and Succession Planning Insights from the Field

Episode Summary

In this episode, Makenzie Wirth interviews Joe Jones, Audit Partner at Berman Hopkins. As lead of the firm’s Construction Advisory Services Team, Joe shares his perspective on the recent trend of construction companies transitioning ownership to ESOPs. From audit considerations, valuation risks, bonding, backlog quality, governance, and jobsite culture, Makenzie and Joe provide practical advice for construction owners considering employee ownership.

Listen to this episode to understand how ESOPs impact construction businesses and get actionable guidance for your company’s transition.

Key Topics Covered

• Why construction companies are well-positioned for ESOPs
• ESOPs as a workforce retention and succession planning tool
• Owner exit strategy vs. long-term involvement
• Bonding, leverage, and financial reporting considerations
• Estimating, backlog, and cash flow in ESOP valuation
• Jobsite culture and employee accountability under employee ownership

Transcript

Editorial note:
This transcript has been lightly edited for clarity and readability while preserving the original meaning of the conversation.

H2: Welcome to the Podcast

McKenzie Wirth:
Hi everyone, and welcome back to another episode of Journey to an ESOP and Beyond. I’m your host, McKenzie Wirth, and today I’m excited to welcome a very special guest.

If you’re watching this episode on YouTube, you might be wondering how we managed to get Scottie Scheffler on our ESOP podcast. Believe it or not, it’s just his doppelgänger. I’m excited to welcome Joe Jones to the podcast.

Joe is an audit partner with Berman Hopkins CPAs & Associates. For longtime listeners, you know our podcast is supported by Berman Hopkins, so we’re excited to bring Joe on to share his expertise—especially as it relates to the construction industry and ESOPs.

Joe, thanks for joining us. I’ll pass it to you for a quick introduction.

H2: Joe Jones’ Background in Construction and Audit

Joe Jones:
Thanks, McKenzie. I know I look a little like Scottie Scheffler, but I wish I had his golf swing—I’d be on the course instead of a podcast.

I’m an audit partner at Berman Hopkins and have been a partner for almost a year. Before that, I spent about 12–13 years with a Big Four firm, primarily working in the construction space.

Since transitioning to Berman Hopkins, most of my clients are construction companies. Over the past couple of years, ESOPs have become a very common topic, and I’m excited to share my perspective.

H2: Why Construction Companies Are a Strong Fit for ESOPs

McKenzie Wirth:
From your perspective, what makes construction companies uniquely positioned for ESOPs?

Joe Jones:
Construction companies create value differently than many other businesses. The value isn’t just equipment or backlog—it’s the people, estimation discipline, project execution, and institutional knowledge.

All of that aligns really well with employee ownership, which is why we’re seeing ESOPs grow so rapidly in the construction industry.

H2: ESOPs, Labor Shortages, and Retention

McKenzie Wirth:
Do you see ESOPs helping with workforce retention, especially given labor shortages?

Joe Jones:
Absolutely. ESOPs aren’t just an exit strategy—they’ve become a tool for retaining key people. Employees at all levels have ownership, which helps keep talent in place.

It also gives owners an alternative to selling to private equity or competitors. Instead, they’re selling internally and preserving the company’s legacy.

H2: Owner Exit Strategy vs. Growth Strategy

McKenzie Wirth:
Are owners typically exiting quickly after an ESOP transaction, or staying involved?

Joe Jones:
Most owners stay involved. For first-generation owners who built their companies from the ground up, it’s hard to walk away completely.

An ESOP often allows owners to remain involved—sometimes at the board level—while still using it as a long-term growth strategy.

H2: Succession Planning Challenges

McKenzie Wirth:
What challenges do construction owners face when contemplating an ESOP?

Joe Jones:
The biggest question is bench strength. Owners want to know they have the right leadership team in place to run the business if they step back.

That hesitation is valid. Starting succession planning early is critical—the worst time to plan is when an owner wants out in a year.

H2: Bonding and Financial Considerations

McKenzie Wirth:
Bonding is huge in construction. How does an ESOP impact that relationship?

Joe Jones:
Bonding agents focus on leverage, working capital, and cash flow. ESOP transactions often add debt, which can be concerning if the surety isn’t familiar with ESOPs.

That’s why it’s important to involve your entire ecosystem early—CPAs, banks, bonding agents, and advisors—so there are no surprises.

H2: Audit, Valuation, and Backlog

Joe Jones:
From an audit and valuation perspective, backlog and estimates are critical. Clean work-in-process schedules, disciplined estimating, and properly tracked change orders all directly impact ESOP valuation.

Those numbers don’t just affect bonding—they affect employees’ retirement value.

H2: Culture and Employee Ownership

McKenzie Wirth:
How does employee ownership change jobsite culture?

Joe Jones:
If the company already has a strong culture, ESOPs enhance accountability and pride. Employees understand they’re owners and that their performance matters.

But an ESOP won’t fix a broken culture—that foundation needs to be in place first.

H2: Educating Employees on ESOP Value

Joe Jones:
Education is essential. Employees don’t need the technical details, but they do need to understand how estimating, job performance, billing, and cash flow impact share value.

That understanding is what makes ESOPs truly powerful.

H2: What Stood Out Most About ESOPs

Joe Jones:
What surprised me most was seeing how value is created across the entire organization—not just leadership.

Seeing jobsite employees build real retirement value over decades was incredibly impactful.

H2: Advice for Construction Owners

Joe Jones:
Start early. Focus on estimating discipline, cash flow forecasting, leadership development, and clean financial reporting.

Bring in all stakeholders early so banks, bonding agents, and advisors stay aligned.

H2: The Future of ESOPs in Construction

Joe Jones:
With many owners approaching retirement and a major wealth transfer ahead, ESOPs are only going to become more common—especially in construction.

Final Takeaways

• Construction companies are people-driven, making them ideal ESOP candidates
• ESOPs support retention, succession, and long-term growth
• Early planning improves outcomes and reduces risk
• Financial discipline is critical to ESOP success
• Education drives employee engagement and value creation

Listen to the Episode

🎧 Journey to an ESOP and Beyond

https://www.journeytoanesop.com/podcast/episode/795ecba5/ep3-construction-industry-spotlight-interview-with-joe-jones-audit-partner-at-berman-hopkins