The 13-week forecast is not a budget. It is a cash timing map. It answers one question: on what days in the next 13 weeks will my bank account be at or below zero if I take no action? When the answer is Week 7 you have 7 weeks to do something about it. When the forecast is not running you find out on the day the payroll hits and the account is empty.
Map every payroll date and amount for the next 13 weeks. Construction payroll is typically bi-weekly or weekly. Each payroll date is a fixed cash outflow. Map it to the calendar. Payroll goes out whether a pay app was approved last week or not. This is the most reliable cash outflow to forecast.
Map every pay app approval and expected collection date. For each active job: the GC billing cutoff date, when the pay app will be submitted, when it will be approved (typically 7-14 days after submission), when payment will arrive (typically 21-35 days after approval). The gap between payroll going out and pay app collections coming in is the cash gap the forecast identifies.
Map all material payments and overhead. Material supplier terms (net 30 is typical), equipment loan or lease payments (fixed monthly), insurance premiums (monthly or quarterly), and all other overhead cash outflows. Combine with payroll and pay app timing to see the complete cash position week by week.
Update monthly and act on gaps before they occur. When Week 7 shows a negative cash position update billing timing (submit pay apps earlier, front-load future SOVs), accelerate AR collections (call every invoice over 30 days), or arrange LOC draws at planned rates before the gap arrives. SPM updates the 13-week forecast monthly as part of the standard CFO package.
