FRAMING JOBS LOOK PROFITABLE. THE CASH IS STILL IN TRANSIT.
Framing subcontractors run out of cash for reasons specific to how the work is built and billed, on jobs that are making money. The three that cost the most in this trade are below, taken from framing contractor research. Most sit at 75 to 90 days from finishing work to holding the money, and 45 days is achievable.
Cash and profit are measured on different clocks. Your profit and loss records revenue when you invoice and costs when you incur them, while the bank account only knows what cleared. Labour goes out weekly and collects 45 to 90 days later, minus retention. That distance is what a growing, profitable framing company funds out of pocket, and it widens as you grow. The specific things that widen it in this trade are what the rest of this page is about.
WHERE IT LEAKS OUT.
Framing sets the pace for the whole job. Weather delays, foundation slips, and truss delivery misses land on the framer first, and the GC's schedule pressure lands hardest on the trade with the least float behind it. Acceleration (bigger crews, Saturdays) rarely comes with acceleration money unless it's documented and billed.
WHAT MOVES MARGIN IN THIS TRADE.
The Commodity Wrapper
Lumber at $487 per MBF with a $440 to $540 expected range and 20 to 30 percent historic intra-year swings, sold inside fixed-price contracts. Without escalation clauses, dated price bases, and disciplined buyout, the framer is an unhedged lumber trader with a nail gun.
The Pace-Setter's Penalty
First trade in absorbs every upstream slip and every downstream schedule demand. Acceleration without documented, billed acceleration cost is free overtime donated to the GC's schedule.
The 18 Percent Ceiling
The thinnest gross margin of the served trades leaves zero absorption room. Unpriced specialty framing at $500 to $1,500 per feature and blended wood-versus-steel cost history are how a 5 percent net becomes a loss. (cfos-trade-benchmarking-system) ---
DAYS SALES OUTSTANDING.
Ninety days is weak, 45 is the target, 30 is strong. Nothing else moves cash faster.
| Position | Days | What it means |
|---|---|---|
| Weak | 90 days | Roughly three months of work funded out of your own pocket. |
| Target | 45 days | Achievable on the days you control: submission timing, complete documentation, follow up in week two. |
| Strong | 30 days | Requires discipline every month, and it's the cheapest capital available to you. |
Moving from 90 days to 45 frees roughly annual revenue divided by 365, times 45 days. At $4M that's about $493,000. At $8M it's about $986,000. That money doesn't come from a bank and it costs no interest, which is why we work the cycle before discussing financing anything.
FRAMING BENCHMARKS.
Framing subcontractors at $1M to $5M net 5 percent, against a CFOS target of 10 percent, set at 10 percent before taxes or 3.5 points better than your trade's average at your revenue, whichever is higher. Working capital should sit at 13 percent of annual revenue, and the monthly close should finish by day 10 so the numbers can still change a decision.
FREQUENTLY ASKED.
