HOW TO BUILD A 13-WEEK CASH FLOW FORECAST FOR SUBCONTRACTORS.
A 13-week cash flow forecast maps every expected cash inflow — from billing and AR collections — against every known outflow — payroll, payables, debt service — week by week for 13 weeks. The output is your projected bank balance each week. When the balance dips below your minimum threshold in week 8, you have 8 weeks to act. Without the forecast, you find out Thursday morning when payroll is due Friday.
CFOS builds this forecast in week one of every engagement. It is updated every Monday. It is reviewed with the owner every Monday morning. It is the single tool that converts construction finance from reactive to proactive.
The inflow side of the forecast has two sources: expected collections on existing AR, and expected billing from active jobs. For existing AR, look at every open invoice and estimate when payment will actually arrive based on that GC's payment history. Not when the contract says. When they actually pay.
For billing from active jobs, map each job's billing schedule — when is the next pay app due, when is the GC cut-off, what is the expected payment date based on that GC's 30-60-90 day payment pattern. This gives you a week-by-week inflow map that is based on reality, not hope.
Outflows fall into two categories: fixed recurring and variable. Fixed recurring: payroll every two weeks, insurance premiums on the first of each month, equipment payments, rent, LOC interest. These do not change and do not wait for cash to arrive. Map them exactly on the weeks they are due.
Variable: material purchases, subcontractor payments, supplier invoices. These are real obligations but their timing is partly controllable. A material purchase that could happen in week 5 or week 7 — map it where it makes cash sense while still meeting the job schedule. That flexibility is where the forecast gives you room to maneuver.
After mapping inflows and outflows week by week, the bank balance line shows your projected ending balance each week. A dip below your minimum threshold in week 9 is not a crisis — it is a 9-week warning. You have time to accelerate collections, pull a targeted LOC draw, or adjust the billing calendar to smooth the gap.
Without the forecast, that same dip shows up Wednesday afternoon as a $47,000 shortfall before Friday payroll. The situation is identical. The available response time is not. Nine weeks of lead time produces a calm phone call to a GC account manager. Two days of lead time produces a panic draw on personal credit.
FLAT MONTHLY FEE. NO SURPRISES.
Two tiers based on trailing 12-month revenue. No hourly billing. No payroll. No add-ons.
| Revenue | Core Financial | Executive Financial |
|---|---|---|
| Under $1M | $1,900/mo | $2,900/mo |
| $1M–$3M | $2,600/mo | $3,600/mo |
| $4M–$6M | $3,800/mo | $5,500/mo |
| $7M–$9M | $5,100/mo | $6,900/mo |
| $10M–$12M | $6,100/mo | $8,500/mo |
| $13M+ | Quoted | Quoted |
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