CASH FLOW WHEN GROWING FAST.
Growth is supposed to mean more money, and in construction it creates a cash crisis first. More jobs means more mobilization cost, more pay when paid exposure, more receivables outstanding at the same time, and more overhead, all of it before any of the new revenue has been collected. The benchmark is 10 to 15 percent of annual revenue held in working capital, so moving from $3M to $6M takes the target from roughly $300K to $450K up to $600K to $900K.
What catches good contractors is that none of this looks like a problem while it's happening. The backlog is the best it has ever been, the crews are busy, and every job in the file is priced to make money. Underneath that, three jobs bought material, staged crews, and pulled permits in the same month, and not one of them can bill for another thirty days. Cash leaves the building on a schedule the field controls and comes back on a schedule the GC controls. That timing difference is the entire problem, and it has nothing to do with whether the work is profitable.
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WHAT IT MEANS.
The construction growth paradox is what happens when revenue growth front loads cost before the collections catch up, so the bank account tightens in the same quarter the backlog looks best.
Growth changes the timing of money before it changes the amount. A new job spends on mobilization in week one, can't bill for it until the first pay app, then waits out the GC's pay cycle and a retainage hold on top of that. Repeat that sequence on one job at a time and the business absorbs it without anybody noticing. Repeat it on three jobs at once and the same sequence empties the account.
WHERE THE GROWTH USES UP THE CASH.
Revenue growing but cash tightening
You're winning more work than ever and the backlog looks great, but the bank account is getting tighter instead of looser. This is the construction growth paradox: revenue growth front loads cost before any of the collections come in. The faster you grow, the wider the distance between what you're spending and what you're collecting.
Multiple simultaneous mobilizations draining cash
Every new project starts with mobilization cost. Equipment gets deployed, material gets bought, permits get pulled, and crews get staged, all of it before the first pay app can even be submitted, let alone collected. When two or three projects mobilize in the same month, the combined mobilization drain can exceed your entire working capital reserve.
Growing beyond working capital
Working capital requirements rise with revenue, because larger projects want more money up front, pay when paid cycles are longer, and retainage holds get bigger in dollar terms. A working capital base that was adequate at $3M can be critically thin at $6M. Growing into a working capital crisis is one of the most common ways construction businesses fail during their best year.
WHAT IT LOOKS LIKE IN DOLLARS.
The benchmark is 10 to 15 percent of annual revenue held in working capital. At $3M of revenue that's roughly $300K to $450K, and at $6M it's $600K to $900K, so doubling revenue roughly doubles the target. If you plan to double revenue without doubling working capital, you need either a larger credit facility or a longer runway on project start sequencing to bridge the difference.
HOW GROWTH GETS FUNDED.
The most useful tool during fast growth is a 13 week cash flow forecast that models every new project's mobilization timeline and collection schedule at the same time. When you can see 90 days out that three simultaneous mobilizations will drain week 6, you still have time to stage the starts differently, restructure a pay app, or draw on the line. Finding out in week 6 leaves you with none of those choices.
As revenue grows the working capital requirement grows with it, so the target gets recalculated rather than left where it was two years ago. We track the working capital position monthly and advise on distribution policy against it. That way the balance builds alongside the revenue instead of getting drawn out of the business in the same year the business needs it most.
During fast growth, when the jobs start counts as much as how much backlog you're holding. Three projects starting the same week can be unaffordable even when each one prices out fine on its own. We model the cash impact of a proposed start before you accept it, so the growth is funded rather than just signed.
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. The one-time onboarding fee is right here in the table.
Built for subs doing $1M to $12M. Above $12.5M we quote.
| Last 12 months revenue | Core | Strategic | Platinum | One-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 $12.5M | Quoted | Quoted | Quoted | Quoted |
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.
CFO work. Your own bookkeeper keeps doing the books.
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 and never in a report.
Your bookkeeper still does the books.
Core, plus bookkeeping and bank reconciliations, plus job costing and WIP software set up and managed for you. Use your own online accounting software or we supply it, one price.
Every job shows its margin while it is still open.
Everything in Core, plus the bookkeeping and bank reconciliations done for you, and the job costing and WIP software set up, loaded with your cost codes, and managed every month. Use your own online software, or move to ours and we cover it.
A bookkeeper we choose does the books and reconciliations. No payroll.
Strategic, plus a controller who handles payables and receivables the way an in-house controller would. You approve every payment.
You approve, and the money side gets handled.
Everything in Strategic, plus a controller we choose who handles your bills and receivables for you the way an in-house controller would. They call vendors, pay the bills and keep the accounting current. We plan the cash flow first, and you approve every payment because it is your money.
A controller we choose does the payables and receivables. No payroll, no pay applications, no collections.
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