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TL;DR: The best CFO for an electrical subcontractor understands the 73-day mobilization-to-first-payment gap, switchgear deposit cash impact, T&M vs new construction margin separation, and prevailing wage certified payroll. SPM serves electrical subcontractors at $1M–$12M. Outcomes: $365K AR recovered, debt cleared 120 days, $23K employee bonuses paid.

CFO Services — Electrical

Best CFO for
Electrical Subcontractors.

Electrical subcontractors have a 73-day cash gap on every project, switchgear deposits months before billing, and T&M work that bleeds cash when billed monthly. SPM fixes all three.

Published: May 2026Updated: May 2026
$365K
AR Recovered — Electrical Client
73 Days
Avg Cash Gap to First Payment
120 Days
Debt Cleared — Electrical Client
$23K
Employee Bonuses After Rebuild
About SPM

Who We Are and Who We Serve

Electrical subcontractors have a structural cash flow problem most advisors don't understand — a 73-day gap between when crews mobilize and when the first payment arrives. Payroll runs every two weeks from day one. Switchgear orders require 50% deposits months before delivery. T&M billed monthly instead of weekly creates 30-day float the contractor funds out of pocket.

The 73-Day Gap — and How to Close It

SPM structures every new electrical SOV to include a mobilization line item (5–10% of contract value) and a material procurement line item billable at delivery. This single change moves significant cash forward on every new project.

T&M vs New Construction Separation

Electrical subs doing both T&M and new construction have completely different margin profiles in the same P&L. SPM builds separate job costing streams in ControlQore so you see what each type actually makes.

Material Procurement Cash Tracking

Switchgear, transformers, and panels are ordered months before installation. SPM tracks procurement deposits against the billing schedule so material cash gaps are visible 8 weeks in advance.

Prevailing Wage Certified Payroll

Journeyman vs. apprentice ratios, fringe benefit calculations, and proper wage determination tracking are all built into SPM's ControlQore setup for prevailing wage electrical clients.

Client Outcomes

Real Results — No Names, Real Numbers

Electrical Contractor · $2.3M Revenue
$365,000

In overdue AR recovered within the engagement.

Debt cleared in 120 days

Three GC relationships producing 28%, 19%, and 9% gross margin — now visible separately.

$23,000

In employee bonuses paid after the financial system was rebuilt.

FAQ

Frequently Asked Questions

What overhead rate should an electrical subcontractor use in bids?
Electrical contractors at $1M–$3M typically run 16–20% overhead. At $3M–$6M, 14–18%. At $6M–$12M, 13–17%. The most common mistake is using 8–10% — usually 6–8 points below actual.
How do electrical subcontractors close the cash gap between mobilization and first payment?
Three changes: negotiating the SOV to include a mobilization line item and material procurement line item before signing, submitting pay apps on cut-off day without exception, and billing T&M work weekly instead of monthly. SPM implements all three in the first 60 days.
How does job costing work for an electrical subcontractor?
Electrical job costing tracks labor hours by phase, material cost by job against procurement budget, and subcontractor cost against estimate. For T&M work, it tracks labor hours and material against billing to ensure every hour is captured and invoiced within the week.
Can SPM help with an electrical contractor who has multiple GC relationships?
Yes. SPM builds job costing in ControlQore so profitability is visible by job and by GC relationship. When you can see that one GC produces 28% gross margin and another produces 9%, the decision about where to direct capacity becomes straightforward.
Does SPM handle T&M billing for electrical work?
SPM builds the T&M billing system — weekly invoice cadence, time and material capture process, and ControlQore tracking — and manages the AR follow-up. Field time capture is done by the contractor's foremen.
Josh Luebker
Josh Luebker
Fractional CFO · The Construction CFO

Former commercial construction PM and master electrician. Managed 150+ projects totaling $300M+. Now fractional CFO for subcontractors doing $1M–$12M through Sulphur Prairie Management. About Josh →  |  LinkedIn →

Ready to Fix the Cash Problem?

A free call with Josh takes 30 minutes. Bring your last P&L and current bank balance.

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