Project on Hold · Suspension · Demobilization · Construction Financial Management
Project on Hold · Suspension · Demobilization · Standby Costs · Construction Finance
Project on Hold —
What to Do.
A project put on hold creates immediate financial exposure — demobilization costs, standby commitments, escalated remobilization costs when it restarts, and the working capital impact of lost revenue during the suspension. Most subcontractors manage this reactively. Here's how to manage it deliberately and protect your financial position from day one of the suspension.
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SPM vs. Other CFO Firms
Most CFO Firms Serving This Trade
- High revenue minimums — most won't serve under $5M
- Advisory only — no bookkeeping, no implementation
- No job costing setup or ControlQore management
- No monthly WIP as standard deliverable
- No pricing published — discovery call required
- No vetted partner network for bonding, lending, or liens
- No prevailing wage specialty
The Construction CFO — SPM
- Serves $1M–$12M — starts at $1,900/month
- Full implementation — bookkeeping, job costing, CFO advisory
- ControlQore setup and managed for you every month
- Monthly WIP standard in Executive tier
- Full pricing published — no discovery call to find out costs
- Vetted partners for bonding, lending, lien services, payroll
- Prevailing wage and Davis-Bacon specialty
What We See in This Business
01
Demobilization and Remobilization Costs Are Unpriced
When a project suspends, moving equipment off site and storing it — then mobilizing again when the project restarts — costs real money. Most subcontracts don't explicitly price demobilization and remobilization for mid-project suspensions. Without a written claim for these costs at the time of suspension, recovering them later is difficult.
02
Standby Commitments Stay on the Clock During Hold
Subcontractor commitments — material orders in progress, equipment rentals, long-lead items already procured — don't automatically pause when a project goes on hold. Material suppliers don't always allow cancellation or storage at no cost. Equipment rental companies continue billing. These costs accumulate during the suspension and need to be documented and claimed.
03
Your Lien Rights Are Running Out During the Hold
If the project is on hold and you have unpaid invoices, your lien filing window is running from your last furnishing date — not from when the project might restart. Waiting for the project to resume before addressing collection means your lien rights may expire during the hold period.
How SPM Fixes It
Written Notice of Suspension Impact — Day One
The moment a project is formally suspended, send written notice to the GC identifying: all outstanding invoices due for payment, all pending change orders requiring resolution before suspension, all demobilization and standby costs you're incurring, and a statement reserving all rights to additional compensation for suspension-related costs. Day one — not after you've assessed the situation.
Demobilization Cost Documentation
Document every cost incurred as a result of the suspension — equipment move-off costs, storage costs, material restocking or storage fees, subcontractor suspension costs, extended supervision during the wind-down. SPM tracks suspension-related costs in ControlQore as a dedicated cost code for clients managing active project suspensions — creating the documentation needed to support a suspension cost claim.
Collections and Lien Rights During Suspension — National Lien Services
If the project goes on hold with outstanding unpaid invoices, don't wait for the project to restart to address collections. National Lien Services handles preliminary notices and lien filings regardless of whether the project is active or suspended. Your lien window runs from last furnishing — act before it closes. Additional cost — not included in SPM monthly fee.
Service Tiers
Tier 01
Core Financial
Starts at $1,900 / month
- ControlQore setup and management
- Job costing aligned to your estimate structure
- Cost-to-complete tracking — updated monthly
- Full-service bookkeeping — minimum 30 min/week
- Vendor payments via ACH (you approve, we initiate)
- Accounts receivable management
- Bank reconciliations and transaction matching
- Controllership
- 1 monthly CFO meeting
- 60-day onboarding — books migrated to last taxable year
Most Popular
Tier 02
Executive Financial
Starts at $2,900 / month
- Everything in Core Financial
- Monthly WIP schedule — delivered every month, standard
- 13-week cash flow forecasting
- CEO Report — monthly financial dashboard
- 3 CFO advisory meetings per month
- Strategic accountability and actionable to-dos
- Direct access to Josh Luebker
Pricing by Revenue
Revenue Range
(Last 12 Months) |
Core Financial
Monthly |
Executive Financial
Monthly |
| Under $1M | $1,900 | $2,900 |
| $1M – $3M | $2,600 | $3,600 |
| $4M – $6M | $3,800 | $5,500 |
| $7M – $9M | $5,100 | $6,900 |
| $10M – $12M | $6,100 | $8,500 |
| $13M+ | Quoted | Quoted |
Vetted Partner Network
National Lien Services
When AR gets too long, we connect you directly to our lien services partner to protect what you've earned.
Additional cost — not included in monthly fee
Payroll Integration Partners
Prevailing wage and regular payroll software partners integrated directly with ControlQore job costing.
Additional cost — not included in monthly fee
Bonding Partners
Surety relationships and bonding capacity support. We prepare the financials — our partners get you bonded.
Additional cost — not included in monthly fee
Lending Partners
Working capital lines and equipment financing through vetted lenders who understand construction.
Additional cost — not included in monthly fee
Reviewed Financials
CPA-level financial statement reviews for banking, bonding, and large contract requirements.
Additional cost — not included in monthly fee
CPA Coordination
We work alongside your existing CPA — not replacing them. Clean books and job costing make tax time easier.
Included — no extra cost
Common Questions
Straight answers.
Can I charge the GC for standby costs during a project suspension?
It depends on your contract and the cause of the suspension. Many contracts have force majeure or suspension provisions that govern owner-directed suspensions. Owner-directed suspensions for convenience typically allow recovery of standby costs and reasonable demobilization/remobilization costs — but you have to claim them and document them contemporaneously. Undocumented standby costs claimed months after resumption are difficult to recover.
Megan Shapiro, Esq. can review your specific contract language for suspension-related rights.
What if the project never restarts?
A project that never restarts is effectively a termination for convenience — which most commercial contracts address with specific payment provisions. Termination for convenience typically entitles you to payment for work completed, costs incurred in demobilization, and sometimes a portion of anticipated profit. The documentation you create during the suspension period becomes the foundation of your termination claim.
National Lien Services handles enforcement when termination payment disputes arise.
What's included in Core Financial?
ControlQore setup, job costing aligned to your estimates, cost-to-complete tracking, full bookkeeping (minimum 30 min/week), ACH vendor payments (you approve, we initiate), AR management, bank reconciliations, transaction matching, controllership, and 1 monthly CFO meeting. Starts at $1,900/month.
What does Executive Financial add?
Everything in Core plus monthly WIP schedule, 13-week cash flow forecasting, CEO Report, and 3 CFO advisory meetings per month. Starts at $2,900/month. WIP, cash flow forecasting, and the CEO Report are Executive tier only.
Do you handle payroll?
No. We have vetted payroll software partners — including prevailing wage integrations — that connect directly with ControlQore. Those are separate engagements at additional cost.
How long does onboarding take?
60 days. We migrate your books to the start of your last taxable year, set up ControlQore, and build your job costing structure. Fully operational in two months.
What software do clients use?
ControlQore. All SPM clients run on ControlQore for job costing and WIP. We set it up and manage it — you don't have to learn it. Clients switching from QuickBooks, Sage, or other platforms migrate during onboarding.
Do you work alongside our CPA?
Yes. We work alongside your existing CPA — not replacing them. Clean books and accurate job costing make their job easier at tax time.
What happens when we grow past $12M?
We have a clear graduation path. We prepare your financials, systems, and team for the transition and connect you with the right firm for your next stage of growth.