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WHY YOU'RE SHORT

IRRIGATION JOBS LOOK PROFITABLE. THE BALANCE SHEET IS STILL THIN.

QUICK ANSWER

Irrigation subcontractors have no cash left 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 irrigation contractor research. Most are 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 irrigation 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.

BY JOSH LUEBKERPublished 2026-08-06Updated 2026-11-02
WHERE THE CASH GOES IN IRRIGATION

WHERE IT LEAKS OUT.

01 · Two-season cash (startup and blowout bookend the year)

The revenue calendar spikes twice. Spring startups get packed into a few weeks. Fall winterizations have to beat the first freeze. Compressor capacity and crew count cap how many systems fit inside each window. Miss the freeze window and a $75 service call becomes a spring repair claim. The seasonal reserve from the dirt family applies here too, on a shorter clock.

The system that controls this

THE THREE THAT DECIDE THE YEAR

WHAT MOVES MARGIN IN THIS TRADE.

LEAK 01

The Orphaned Install

Install a system without a service agreement and you give away 30-to-40-percent-gross-margin recurring work to whoever answers next spring's call. Get the agreement signed at install.

LEAK 02

The Freeze Race

Startups and winterizations put the year's service revenue into two windows, capped by your crews and compressors. A missed blowout turns into a spring repair claim. Window capacity is the business plan.

LEAK 03

The Package Seam

Install is part of landscape and sitework packages, where sleeving, routing and controller scope blur together. Put the boundaries in writing before the trencher moves. Whoever documented least ends up paying for the seam.

THE NUMBER TO MANAGE

DAYS SALES OUTSTANDING.

Ninety days is weak, 45 is the target, 30 is strong. Nothing else moves cash faster.

PositionDaysWhat it means
Weak90 daysRoughly three months of work funded out of your own pocket.
Target45 daysYou can get here on the days you control. Bill on time, send complete paperwork, and follow up in week two.
Strong30 daysTakes work every month. It's the cheapest money you can get.

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 costs no interest and needs no bank. So we fix billing and collections before we talk about financing.

WHERE YOU SHOULD BE

IRRIGATION BENCHMARKS.

Irrigation subcontractors at $1M to $5M net 7 percent, against the CFOS net profit target, set at your trade's net profit average at your revenue plus 3.5 points, never below 10 percent, before taxes. The working capital target is 13 percent of annual revenue, and the monthly close should finish by day 10 so the numbers can still change a decision.

Full irrigation benchmarks
COMMON QUESTIONS

FREQUENTLY ASKED.

Because the jobs earn before the money comes in. Labour and material go out on a weekly cycle and collect 45 to 90 days later, with 5 to 10 percent held as retention behind that. In irrigation specifically that distance is widened by two-season cash (startup and blowout bookend the year). None of that reads as a loss on any single job, which is why it goes unaddressed.

Most jurisdictions require annual testing of backflow preventers by certified testers, filed with the water purveyor. The state creates the recurring demand. Price it as a compliance product that covers the certification, calibration and filing overhead, and route it with the rest of your service calendar.

Plan the two windows ahead. Crew count and compressor capacity cap your startups and winterizations, so how tightly you route inside the windows sets the year's service revenue. Fund a shoulder-season reserve, presell the windows on the agreement calendar, and have every system scheduled before the freeze.

Three tiers, and which one you are in depends on how much of the work you want off your desk. On Core we build your plan every month and your team does the work: job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a monthly meeting that ends in decisions, while your bookkeeper keeps doing the books. On Strategic we build the plan, track it and adjust it every month: our team does the bookkeeping and the bank reconciliations, and the job costing and WIP software is set up and managed for you, on your own online software or ours. On Platinum we manage the money side for you every week: our team handles your bills and receivables the way an in-house controller would, and you approve every payment. We don't do payroll.
$10.7M+
Client AR Recovered Since 2023
48
Active Trade Specializations
60 DAYS
Average Onboarding Time
WHAT THIS TIES INTO
Josh Luebker, SPM The Construction CFO
Josh Luebker
FRACTIONAL CFO · SPM THE CONSTRUCTION CFO

Josh Luebker is a master electrician turned construction CFO, president of SPM The Construction CFO and author of CONTROL: C.F.O.S. Construction Financial Operating System.

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