THE GAP BETWEEN EARNING IT AND HAVING IT.
Construction cash flow problems are not random. They follow predictable patterns — mobilization before billing, GC cycles running 45 to 60 days, retainage held to final acceptance, material deposits required before the invoice cycle starts. The CFOS Cash Flow Cycle System maps every one of those gaps 13 weeks out so the owner sees what is coming, not what already happened.
Cash Flow Cycle is Module 3 in CFOS. It converts the billing calendar, GC pay windows, retainage balances, and procurement commitments into a single 13-week cash forecast updated every week. The goal is not a spreadsheet. The goal is a decision tool — something the owner looks at on Monday morning and knows exactly where cash is going over the next quarter.
WHAT ACTUALLY BREAKS WITHOUT THIS.
Mobilization Capital That Nobody Planned For
Every commercial subcontractor has a mobilization gap — costs that hit before the first invoice can be submitted. On a $1.8M project, that gap can be $80K to $150K in crew payroll, material deposits, bonding fees, and equipment mobilization. Most subcontractors discover the mobilization capital requirement at the point of mobilization — after the contract is signed and there is no option but to fund it.
GC Pay Cycles Built on Wrong Assumptions
Private GC work pays in 30 to 45 days. DOT and municipal work pays in 60 to 90. A civil contractor bidding a TxDOT project on 30-day payment assumptions is funding a 30 to 60 day gap out of their own working capital on every project, every cycle. The forecast has to be built on actual GC pay windows — not the industry average or the owner's hope.
Retainage That Nobody Is Tracking
Most commercial contracts hold 5 to 10% retainage until substantial completion. On a $1.2M subcontract at 10%, that is $120K withheld for the duration — sometimes 12 to 18 months after the subcontractor's scope is done. If nobody is actively tracking retainage release triggers and filing within 5 days of completion, that $120K sits indefinitely.
WHAT OWNERS THINK IS WRONG VS WHAT IS.
We have QuickBooks — we can see our cash position.
QuickBooks shows you the bank balance and what has been entered. It does not project forward. It does not map billing cutoff dates, GC payment windows, retainage release schedules, and AP timing into a 13-week forward view. A bank balance is a rear-view mirror. A 13-week forecast is a windshield. CFOS builds the windshield.
Our CPA does our cash flow projections.
A CPA produces annual projections for tax and financial reporting purposes. They do not update a rolling 13-week forecast weekly, map it to the GC cutoff calendar, and flag gaps before they become crises. That is an operational function, not a tax function. CFOS runs it operationally — every week, not once a year.
We draw the LOC when we need it.
A reactive LOC draw means the cash gap already arrived. The problem with reactive LOC management is that draws compound — draw to cover payroll this Friday, pay interest, draw again next month to cover the interest plus the next gap. CFOS clients stop drawing reactively because the forecast shows the gap coming 8 to 10 weeks out — enough time to accelerate billing, adjust AP timing, or stage the draw at a planned rate.
SPECIFIC OUTPUTS. NOT ADVICE.
Proof it works: A $7.1M civil contractor had two maxed LOCs, an SBA loan, and a personal guarantee on his house. CFOS built the cash forecast, slowed new work for two months, and overhauled billing. In the first 30 days, $310K in overdue receivables hit the bank. Within 90 days both LOCs and the SBA loan were paid off. See the case study →
THIS PROBLEM IS TRADE-SPECIFIC.
Civil & Grading
Civil contractors have the most complex cash flow cycle in commercial subcontracting — equipment mobilization, DOT pay cycles, unit-price billing, and retainage held to project acceptance. CFOS builds the civil forecast around all four variables simultaneously, not just the billing calendar.
Underground Utility
Bore pit mobilization costs, permit delays that push start dates by 30 to 90 days, and municipal pay cycles running 90 days make underground utility one of the highest cash-cycle-risk trades. CFOS models every variable from contract signing so the owner knows the exposure before mobilizing.
Concrete & Structural
Concrete contractors carry large material deposits against pour schedules that sometimes slip. The deposit goes out, the pour gets delayed, and the billing cycle shifts — creating a cash gap that compounds over multi-phase projects. CFOS tracks procurement commitments against billing milestones to prevent the compounding.
Multi-Trade GCs
Self-performing GCs managing multiple subcontract packages carry the most complex cash flow cycles — retainage on multiple contracts, pay-when-paid exposure to owner payment, and mobilization on sequential phases. CFOS maps the full cycle across all active contracts simultaneously.
BEFORE AND AFTER.
FREQUENTLY ASKED.
