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TRADE SERVICE · CIVIL & EARTHWORK CLUSTER

FRACTIONAL CFO FOR PAVING CONTRACTORS.

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We manage the finance side for paving subcontractors doing $1M to $12M. You get job costing aligned to the way you estimate, a 13 week cash flow forecast, monthly WIP, and a CFO in the room every month. Pricing starts at $1,900 per month.

Paving buys by the ton and sells by the square yard at a depth. So the first report we build reconciles plant tickets against placed quantity on every job. Waste, over-depth and handwork are all in that spread. A quarter inch of over-depth across a big lot is material given away, and nobody catches it without the reconciliation. We write index-tied escalation language into private bids. DOT contracts adjust pay to the liquid asphalt index automatically, and most private contracts leave you fully exposed on the same commodity. Then we build a winter reserve. Plant windows and temperature floors put the year's revenue into a short season, and the fleet and the overhead cost you for twelve months.

BY JOSH LUEBKERPublished 2026-08-06Updated 2026-11-02
WHERE PAVING LOSES MONEY

THE THREE THINGS THAT DRAIN THE CASH.

LEAK 01

The Unhedged Tuesday

DOT work adjusts your pay to the liquid asphalt index automatically. Private work leaves you fully exposed on the same commodity. Index-tied escalation language in your private bids is the most valuable contract habit in the trade.

LEAK 02

The Ticket-to-Yield Gap

You buy by the ton and sell by the square yard. Waste, over-depth and handwork are in the spread between plant tickets and placed quantity. Nobody sees the material given away until each job is reconciled.

LEAK 03

The Ninety-Day Season

Plant schedules, temperature floors and a short calendar put the year's revenue into one window. The fleet and the overhead cost you for twelve months. You need a winter reserve to stay in business.

THE MATH

FROM 6% TO 10% NET.

At $1M to $5M, the average paving sub earns 20% gross margin and spends 14% of revenue on overhead. What's left is 6% net profit before taxes (Run On CFOS Trade Benchmark Reference). The CFOS target is 10% before taxes. That is the paving average plus 3.5 points, and never below 10%. The book CONTROL's 12% is the rule of thumb across trades. It is not the industry average.

Two changes get you to the target. Overhead comes down 1 point to 13%, and gross margin comes up 3 points to 23%, so 23 minus 13 leaves 10. The gross margin points come from the three problems above, once you price them and bill for them. On a $3M year, every point is $30,000.

HOW SPM FIXES IT

WHAT WE CHANGE.

These are the paving problems we put a number on first. Each one gets its own cost code, its own line on the schedule of values or its own line in the 13 week cash forecast, so you can read it in the monthly meeting while the job is still open.

GAP CALCULATOR

THE PAVING GAP CALCULATOR. AVERAGE AGAINST TARGET, IN DOLLARS.

Put in your annual revenue. You get gross margin, overhead and net profit for paving contractors your size: the industry average and the CFOS target, in dollars a year. Nothing you type leaves this page.

Another trade too? The gap calculator for every trade.

Your figures show here once you put in your revenue.

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Why aim for the target. An average is the middle of the pack: about half of companies do worse. And about 6 in 10 construction businesses close within 10 years (U.S. Bureau of Labor Statistics: about 40 percent of construction businesses opened in 2013 were still open in 2023). So the business in the middle is one of the ones that close. On those numbers, average is a business that closes within 10 years. That is why the CFOS target is a requirement.

Want your own numbers against these? The Financial Health Snapshot builds a CEO Report from your last 12 months and sets every figure against your trade.

PRICING

YOU PAY ONE FLAT MONTHLY FEE.

The fee is set by your trailing 12 month revenue. We don't bill by the hour and we don't do payroll. The one-time onboarding fee is in the table too.

Type a number and your band and its prices show here. The full table is below.

Built for subs doing $1M to $12M. Above $12.5M we quote.

Last 12 months revenueCoreStrategicPlatinumOne-time onboarding
Under $1M$1,900$3,100$3,300$2,500
$1M to $3.5M$2,600$4,100$5,300$4,500
$3.5M to $6.5M$3,800$5,900$8,300$6,000
$6.5M to $9.5M$5,100$7,600$11,800$7,500
$9.5M to $12.5M$6,100$8,900$14,900$9,000
Above $12.5MQuotedQuotedQuotedQuoted

The onboarding fee covers migrating your books back to the start of your last taxable year and getting you fully operational in 60 days. It's billed once, with your first invoice. It's the same for all three tiers, and it moves with your revenue band. Your first month is prorated, and your monthly engagement starts on the first of the first full month.

Just want the setup? Onboarding only is the same onboarding work with no monthly service after it, one time, at the onboarding fee plus $2,000. Start a monthly engagement later and $2,000 counts toward it. It starts at $4,500, and the price for every band is on the pricing page.

The three tier columns are the whole price. Which one fits depends on how much of the work you want off your desk. No payroll. No hidden line items. The onboarding fee is right here in the table.

  • Online software only: QuickBooks, Sage, Viewpoint and similar. No VPN or hosted desktop.
  • Not in any tier: payroll, pay applications, collections on receivables.
  • Pricing valid through 2027.

What Core, Strategic and Platinum each include is on the pricing page.

Prevailing wage note: Paving work often comes from public bids. On those jobs, certified payroll and wage classifications have to match the job cost record. ControlQore keeps the classification with the cost code, so the certified report and the job cost report come from the same data. Your office stops typing the same numbers twice every week.

COMMON QUESTIONS

FREQUENTLY ASKED.

Paving contractors at $1M to $5M net 6 percent on average, rising to 14 percent by $25M to $50M; the CFOS net profit target is 10 percent before taxes at $1M to $5M, since the target is the trade average plus 3.5 points and never below 10. The gap is unhedged asphalt on private work, ticket-to-yield losses and a fleet paid for through the off-season. Every net profit figure here is gross margin minus overhead, stated before taxes, the same basis CFMA reports net income on.

See the full benchmarks for every revenue band on Run On CFOS.

Usually it needs the CFO work, and a full time CFO is more than it needs. At $5M to $10M, paving subs average 9% net profit before taxes (Run On CFOS Trade Benchmark Reference), and the CFOS target is 12.5%. On $5M of revenue every point is $50,000, so that difference is worth $175,000 a year. A full time CFO costs $150,000 or more in salary alone. SPM's published price for $3.5M to $6.5M is $3,800 a month for Core to $8,300 for Platinum.

Public contracts tie pay adjustment to a monthly published liquid-asphalt index. WSDOT triggers at a 5 percent move from the base price. Ohio adjusts against its monthly asphalt cement price. The adjustment works in both directions. For private work, put the same terms in your own bids: a dated AC price basis and an index-tied adjustment clause.

Check the ticket-to-yield spread. You buy by the ton and sell by the square yard at a depth, and waste, over-depth and handwork are in between. A quarter inch of extra depth across a large lot is tons of material given away. Reconcile plant tickets to placed quantity on every job.

Whoever the paper says accepted the subgrade. Proof-roll, document soft spots, and get written acceptance or a directive before the paver moves. Pave over an undocumented problem and the failure comes back as your warranty claim.

Yes, as its own division. Crack seal, striping and sealcoating use different crews, margins and sales cycles, and they recur when paving is out of season. Blended books won't show whether maintenance pays for the iron or the iron uses up the maintenance money.

A bookkeeper records history. Index-tied escalation language, ticket-to-yield reconciliation, subgrade acceptance documentation and seasonal cash planning are controls, and that's CFO work. SPM does that CFO work for paving contractors.

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.

Sixty days. We migrate your books back to the start of your last taxable year and build your job costing structure from scratch, and on Strategic and Platinum we set up the job costing and WIP software too. You're fully up and working in two months. The onboarding fee is one time, the same for every tier, and set by your revenue band.

ControlQore is the job costing and WIP platform we use on the Strategic and Platinum tiers. It's built for contractors, costs less than the older tools, and has AI built in. We set it up and manage it, so you do not have to learn it. Core is the CFO work only, so it does not include the software.

A bookkeeper records what happened. We tell you what it means and what to do about it. We align job costing to your estimates, track WIP monthly, and hold a monthly meeting where you decide what to fix and who fixes it.
$10.7M+
Client AR Recovered Since 2023
48
Active Trade Specializations
60 DAYS
Average Onboarding Time

How paving CFO firms compare: the paving firm study, with every score and its source.

WHAT ELSE BREAKS IN PAVING

MORE PROBLEMS WE PUT A NUMBER ON.

Iron per ton (paver-roller fleet math)

Equipment fleet paver roller roi

Pavers, rollers, milling machines, and distributor trucks are high-dollar, short-season iron; utilization against a compressed calendar decides whether the fleet makes money for the company or costs it money. Existing.

Plant availability and the paving window

Seasonal asphalt plant availability

Hot mix comes from someone else's plant on someone else's schedule, seasonal plant shutdowns compress the calendar, and haul-time physics (mix arriving too cold to lay) put a radius around every job.

Subgrade acceptance (pave over it, own it)

Subgrade failure changed condition

Paving inherits the subgrade: pave over soft spots without documented acceptance and the failure becomes the paver's warranty claim. The discipline is proof-rolling documentation and written acceptance before the paver moves.

The maintenance annuity (crack seal, striping, sealcoat)

Crack seal striping separate revenue

Maintenance lines (crack seal, striping, sealcoating) are the trade's recurring-revenue counterweight to seasonal paving, with different crews, margins, and sales cycles; blended books do not show the annuity.

Tonnage is the measurement (yield tracking)

Tonnage cost tracking

Paving buys by the ton and sells by the square yard at a depth; the spread between plant tickets and placed quantity (waste, over-depth, handwork) is the job's real margin story. Over-depth of a quarter inch across a big lot is an invisible material donation.

MORE ON PAVING

EACH PAVING PROBLEM HAS ITS OWN PAGE.

OTHER SITEWORK AND CIVIL TRADES

Paving is one of 14 trades in the sitework and civil family on our CFO for subcontractors page. Nearby trades with their own page:

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.

THE CHEAPER OPTION WORKS AND TAKES LONGER.

If price comes first, plenty of CFOs and bookkeepers can get your construction company results. It often takes the better part of a year.

If you're a trade contractor, a sub or a GC who wins work, keeps the crews busy and still can't figure out where the money goes, we get in the weeds with you. We change the processes that cost you money on every job, build the ones you're missing and give you the formula, so you see results in 60 to 90 days.

Our guarantee holds when you come to every meeting, do the process and keep a strong pipeline of work. We can fix how your work pays. We can't fix having no work.

DO YOU KNOW YOUR TRUE MARGIN ON PAVING WORK?

Twenty minutes of questions about how you price paving work, what your jobs come in at once they close, and what keeps coming back to your desk. Nothing gets sold on that call and nothing gets proposed. If Josh can help, you'll set a longer second call.

You don't hire a CFO because it's safe, you do it because the real risk isn't having one.
Book a 20 minute call

20 minutes. No pitch or proposal. Josh asks questions to find out if he can help.

OR START WITH THE WORKBOOKS. NO CALL NEEDED.