WHY ELECTRICAL CONTRACTORS RUN OUT OF CASH.
Electrical contractors run out of cash because commercial new construction carries a 73-day gap between mobilization and first payment, switchgear and transformer deposits are required months before installation billing, and T&M work billed monthly instead of within 48 hours creates a permanent uncollected float.
Electrical work on commercial new construction mobilizes early, rough-in wiring, panel prep, before there's much to bill against, and the gap to first payment can run over two months. Switchgear and transformer procurement adds a second cash hole, deposits required well before the equipment is installed and billable. And T&M work, meant to be quick, simple billing, often gets batched into the monthly cycle instead of invoiced within days, creating a permanent float of uncollected T&M revenue that never quite catches up.
WHERE THE MONEY GOES.
Electrical contractors on commercial new construction mobilize crews for rough-in work early in the schedule, well before there's substantial billable progress to point to. The gap between that mobilization and the first payment can run 73 days or more depending on the GC's billing cycle.
Switchgear and transformer procurement adds a second, larger cash requirement: major equipment deposits are frequently required months before the equipment is actually installed and can be billed, a significant capital outlay with no offsetting revenue for an extended period.
The consequence chain: mobilization costs hit immediately with a 73-day wait for first payment · switchgear and transformer deposits add a separate, larger cash requirement months ahead of install billing · T&M work gets batched into monthly billing instead of invoiced within 48 hours, creating a permanent uncollected float · all three compound simultaneously on active commercial jobs.
THE THREE MECHANISMS.
THE 73-DAY MOBILIZATION-TO-FIRST-PAYMENT GAP
Commercial new construction electrical work mobilizes crews and material early, but the first pay application isn't paid for roughly 73 days on average, a gap that has to be funded from the line of credit or existing cash reserves on every new job start.
SWITCHGEAR AND TRANSFORMER DEPOSITS BEFORE INSTALLATION BILLING
Major electrical equipment, switchgear, transformers, requires deposits well before delivery and installation, months ahead of any billing event tied to that equipment actually going in. That deposit is a significant, isolated cash outflow with no near-term offsetting revenue.
T&M WORK BILLED MONTHLY INSTEAD OF WITHIN 48 HOURS
T&M work is inherently well-suited to fast billing, the work and cost are known almost immediately, but many electrical contractors batch T&M invoices into the standard monthly billing cycle instead of invoicing within 48 hours. That delay creates a permanent float of uncollected T&M revenue that compounds across every ticket.
THE MISDIAGNOSIS.
Owners blame: "This GC just takes a long time to pay."
What's actually happening: The GC's payment cycle is usually standard for commercial work. The real gap is the SOV not being structured to bill mobilization and early rough-in work as its own milestone, extending the wait to first payment.
Owners blame: "Equipment costs are just high on this job."
What's actually happening: Switchgear and transformer deposits are a specific, isolated cash timing issue, not a general cost overrun. Forecasting for that deposit explicitly, months ahead, prevents it from feeling like a surprise cost spike.
Owners blame: "T&M work isn't worth billing that fast, it's a small part of the business."
What's actually happening: Even a modest volume of T&M work, batched into monthly billing instead of invoiced within 48 hours, creates a permanent uncollected float that compounds across every ticket and every month.
THE FIX.
C.F.O.S is the financial operating system built around electrical's specific cash failure patterns · the 73-day mobilization-to-payment gap, switchgear and transformer deposit timing, and T&M work billed monthly instead of within 48 hours. Without this system running every month, mobilization costs compound into LOC draws on every new job, equipment deposits create unplanned cash crunches, and T&M float grows permanently uncollected. This is C.F.O.S executing inside the specialty cluster · every deliverable specific to electrical, monthly, and connected to the other five layers of the system.
FLAT MONTHLY FEE. NO SURPRISES.
Three tiers based on trailing 12-month revenue. No hourly billing. No payroll. No add-ons.
| Revenue (Trailing 12 Months) | Monthly Fee |
|---|---|
| Under $1M | $1,900 – $2,900 |
| $1M–$3M | $2,600 – $3,900 |
| $4M–$6M | $3,800 – $5,700 |
| $7M–$9M | $5,100 – $6,900 |
| $10M–$12M | $6,100 – $8,500 |
| $13M+ | Quoted |
Range reflects three service tiers (Core Financial, Executive Financial, Strategic Financial) · scope and fee within each band depend on which tier fits your business. Strategic Financial includes ControlQore job costing and WIP software at no added cost. SPM does not handle payroll.
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