CONSTRUCTION CASH FLOW PROBLEMS, EXPLAINED.
Construction cash flow problems almost always trace back to three causes: billing lag between cost incurred and cash collected, no rolling cash forecast to plan around the shortfalls you already know are coming, and job profitability that's tracked at closeout instead of weekly. A subcontractor can be genuinely profitable on the P&L and still run out of cash because none of those three are being managed as a system.
Cash flow problems in construction rarely mean the business isn't making money. They mean the distance between spending cash and collecting it's going unmanaged, and that distance compounds across every job running at the same time. Mobilization costs, retainage, slow pay cycles, and unbilled change orders all pull cash out of the business before the P&L ever reports a loss. Fixing cash flow isn't about becoming more profitable. It's about building a system that sees the squeeze coming before it becomes a payroll problem.
WHAT IT MEANS.
Construction cash flow problems are timing problems: the distance between when a job spends cash and when that cash gets collected, left unmanaged across every job running at once.
WHY THE CASH RUNS OUT.
Cause 01, billing lag: the distance between cost and cash
Every job carries distance between when cost is incurred, meaning mobilization, materials, and labor, and when that cost gets billed and collected. On most commercial subcontractor work that runs 30 to 90 days depending on the GC or owner, and it repeats on every job running at the same time. The distance itself isn't the problem. Not knowing how wide it is, or funding it reactively off a line of credit instead of planning for it, is what turns a normal billing cycle into a cash crisis.
Cause 02, no rolling cash forecast: reacting instead of planning
Without a rolling cash flow forecast, most owners find out they're tight the week a payroll or a vendor payment is due, not a month ahead when there's still time to do something about it. A 13 week rolling forecast turns that discovery into a planned event. The squeeze still exists, but it's visible weeks out instead of surfacing as a surprise on a Thursday afternoon.
Cause 03, job profitability tracked at closeout: too late to act on it
When actual cost is only compared to the bid at the end of a job, labor variance, unbilled change orders, and overhead misallocation compound for the whole duration before anybody sees the number. Weekly cost to complete tracking catches the same variance while there's still time to correct staffing, billing, or scope, instead of finding it in a closeout report with nothing left to do about it.
THE OUTPUTS, NAMED.
FLAT MONTHLY FEE. NO SURPRISES.
Three tiers, priced by your trailing twelve month revenue. Which one you're in depends on how much of the work you want off your desk. No hourly billing, no payroll, and no add-ons.
| Last 12 months revenue | Monthly fee |
|---|---|
| Up to $1M | $1,900 to $2,900 |
| $1M to $3.5M | $2,600 to $3,900 |
| $3.5M to $6.5M | $3,800 to $5,700 |
| $6.5M to $9.5M | $5,100 to $7,100 |
| $9.5M to $12.5M | $6,100 to $8,500 |
| $12.5M to $15.5M | $7,400 to $11,000 |
| $15.5M to $18.5M | $9,400 to $13,500 |
| $18.5M+ | Quoted individually |
Range reflects the three tiers below. Which one you're in depends on how much of the work you want off your desk. No payroll. No hidden line items.
You stop guessing.
You get the CFO work. Job costing built against the way you estimate, a 13 week cash forecast, monthly WIP, and a meeting every month that ends in decisions rather than a report.
Your bookkeeper keeps doing the books.
You stop touching the books.
Everything in Core, and we run the bookkeeping and the controllership as well. Nobody in your office is answering coding questions or chasing a reconciliation at month end.
We do the books. No payroll.
Every job shows its margin while it's still running.
Everything in Executive, plus the job costing and WIP platform set up, loaded with your cost codes, and managed for you every month. You never have to learn it.
We do the job costing.
FREQUENTLY ASKED.
