Survival or Collapse? The Case for CFOs and Modern ERP in Construction
By: Rich Uphus | September 22, 2025
A FullClarity Special Report
How Financial Leadership and Technology Safeguard Success in 2025
In the high-stakes construction industry, financial management isn’t just about keeping books balanced—often it’s about survival. Bradley Lay, M&A and Private Equity Investor, underscores this in a compelling LinkedIn post, noting that 82% of collapsed construction firms questioned the need for a CFO, only to fail later.
In 2025, the construction landscape is marked by changing market conditions, tight margins, and complex financial structures. This white paper explores whether a robust ERP system, coupled with a Finance Director or CFO, is a recipe for success, or merely an expensive luxury.
Why Do Construction Companies Fail?
The harsh reality is vividly captured by Bradley Lay, who highlighted that out of 127 construction company collapses analyzed, 104 had no Finance Director
or CFO—“We were making money on every job,” one construction owner insisted, “yet had no clear grasp of cash flow or work-in-progress (WIP).”
Michael Marrero, a top-Ranked SBA & Commercial Lending Executive, echoes this sentiment—
“Without strategic financial leadership, even high-revenue companies can unravel fast… betting on ‘being profitable’ without rigorous financial oversight is a dangerous game.”
Real-Life Consequences
The UK construction giant Carillion’s collapse in 2018 provides a chilling lesson: “We were building a Rolls-Royce but only getting paid to build a Mini,” said CEO Richard Howson. [Simon Penfold, Express & Star, 2018]Without real-time data and adequate ERP systems, Carillion spiraled into £6.9 billion in liabilities.
This example highlights the crucial role that financial oversight and technology play in ensuring survival.
CFO & ERP: A Strategic Combination
John Mayfield, fractional CFO, commenting on
LinkedIn —“Contract accounting, revenue recognition, costing, pricing, and effective cash flow forecasting are crucial. Effective finance support is priceless.”
Oracle NetSuite and FullClarity Construction for NetSuite represent a robust ERP solution, specifically built to support CFO-led financial strategies. According to Gary Clarke, Operations Manager at Rendition Homes, a leading custom and volume builder —
“With NetSuite and FullClarity, I can access vital financial information in two clicks. It’s instantly available to anyone—no more bottlenecks.”
This solution ensures real-time financial clarity, unified project management, and automated workflows.
Pros and Cons: Having a CFO and ERP vs. Not
The Cost of Not Investing
Bradley Lay starkly sums up the cost-benefit scenario — “The cost of a Finance Director: £200K. The cost of not having one: the collapse of your business.”Sheri Quatrale, VP at Treasury Management Sales, reinforces this in LinkedIn —
“Without financial leadership, businesses operate on gut feel and bank balances. That works — until it doesn’t.”
ERP Implementation: A Strategic Imperative
However, simply adding ERP systems isn’t enough. ERP projects require strong leadership and alignment between business and IT strategies. A study of Dutch construction firms notes ERP implementation failures typically result from poor change management and inadequate senior leadership.NetSuite highlights the importance of strategic alignment and strong leadership from CFOs to achieve ERP success, significantly reducing implementation risks and enhancing operational clarity.
A Word from Industry Leaders
Andrew Coghlan, CEO of FullClarity, reinforces the strategic importance of this combination —“The construction industry’s future depends on financial clarity and operational integration. With NetSuite + FullClarity, we equip CFOs and finance directors with tools to safeguard their company’s financial health.”
Real-World ROI
ERP systems paired with CFO leadership demonstrate proven ROI:
- Positive ROI within 2.5 years through productivity gains and cost reductions [Alli Kendrick, LinkedIn, 2025]
- CFO-led ERP reduces errors and accelerates financial close processes
- 90% return on ERP investment over three years via combined sales growth, efficiency, and cost reductions [Alli Kendrick, LinkedIn, 2025]
Conclusion: The Essential Combination
Construction businesses navigating the complexities of 2025 require more than traditional bookkeeping—they need strategic financial leadership supported by robust ERP solutions. The combination of a CFO or fractional CFO and a comprehensive ERP system, such as Oracle NetSuite + FullClarity Construction, provides unmatched visibility, financial control, and strategic foresight.In the unforgiving landscape of construction, financial clarity is not optional; it’s essential. As Sheri Quatrale aptly concludes — “Financial leadership isn’t a luxury—it’s a survival strategy.”
Act now to secure a competitive edge and ensure your projects remain profitable. For more information on how NetSuite + FullClarity can transform your operations, visit FullClarity.com
