THE CONSTRUCTION SUBCONTRACTOR AR COLLECTION SYSTEM.
An AR collection system isn't aggressive. It's consistent. The difference between a subcontractor who collects fast and one who always has cash problems is the process. A weekly AR aging review, a defined call cadence at 31, 46, and 60 days, and clear escalation triggers at 90 days recovers more cash than any other single change you can make to your financial operation.
The reason consistency beats pressure is timing. A call at 31 days is a business check in from a company that tracks its paperwork, and a call at 90 days is a company that needs money. Same contractor, same invoice, completely different conversation, and the GC hears the difference immediately. Making the calls on a calendar takes the emotion out of it and puts every invoice in front of somebody while there's still a recovery window. By the time an invoice is 90 days old, what you've left is a legal window instead.
Rather talk it through first? Book a 20 minute call. Nothing gets sold on this call.
Want Josh to build it with you? Cash Flow Intervention, $497 one time. A 90 minute session that fills in the 13 week forecast with your real numbers and makes the billing changes on the call.
WHAT IT MEANS.
An AR collection system is a fixed weekly routine of aging review, calls at set day counts, and written escalation triggers that turns billed invoices into cash on a schedule.
Every Monday morning, the AR aging report is the first financial document reviewed. Every invoice that crossed into a new aging bucket since last Monday gets flagged. Invoices at 31 days get a courtesy confirmation call added to the weekly call list, and anything newly at 46 days or beyond gets a collections call scheduled for that same day.
This is a weekly rhythm rather than a monthly activity, and the timing is the whole point. A problem caught at 46 days still has a recovery window in front of it. A problem caught at 90 days has a legal window instead.
THE CALL SCHEDULE, DAY BY DAY.
31 days, the courtesy call
At 31 days, call the GC project manager or the AP contact. Introduce yourself and your company, then confirm they received your pay application for the project on the date you submitted it and that there are no open questions or documentation needed on it. This is a professional business check in rather than a collections call. It plants a flag that you're tracking this invoice specifically, it confirms the invoice is in their system, and it typically accelerates payment by 5 to 10 days with no pressure applied at all.
46 days, the collections call
At 46 days this becomes a direct collections call. State the pay app number, the project, the dollar amount, and the submission date, then say your records show payment hasn't been received and ask them to confirm when it will be processed. The goal is a specific date rather than soon or next check cycle. Record the conversation in writing: the date, the person, and the commitment made. If the date passes without payment, you call again on that basis.
60 days, the escalation call
At 60 days with no payment after a 46 day commitment, escalate to the GC's project executive or VP level. Send a written notice by email that includes the invoice number, the amount, the submission date, the 46 day commitment that was made and not honored, and a request for a response within 48 hours, and copy your own project manager. Don't threaten legal action in a first escalation. State facts, request resolution, and let the record speak. This level of escalation resolves most invoices.
90 days, the preliminary lien notice
At 90 days with no payment plan in place, send a preliminary lien notice where it applies. A preliminary notice preserves the right to file one later without starting a claim now. The window for lien rights varies by state and by how many days have passed since first furnishing, and in many states the preliminary notice has to be sent within 20 to 90 days of first furnishing labor or materials. Don't wait until an invoice is 90 days past due to start tracking those deadlines, track them from day one of the project.
WHAT IT LOOKS LIKE IN DOLLARS.
Doing the weekly aging review, the call cadence, and the escalation triggers recovers $150K to $400K for a subcontractor who was collecting on an as needed basis. The courtesy call at 31 days alone typically accelerates payment by 5 to 10 days per invoice. None of that money is new revenue, all of it has already been billed and earned.
THE MONDAY REVIEW, AND THE CALL LOG.
The aging report is the first financial document opened every Monday, ahead of the bank balance and ahead of the job cost reports. Every invoice that crossed into a new aging bucket since the previous Monday gets flagged and assigned a call. That single habit is what keeps invoices from sliding from 46 days into 75 days while everyone is busy in the field.
After each call, record the date and time, who you spoke with and their title, what they said the delay was, what specific payment date they committed to, and what you'll do and when if that commitment isn't met. If an invoice ever escalates to a lien, arbitration, or legal action, that log is your evidence that you tried to resolve the dispute before filing. GCs know this. A professional call log attached to a dispute letter shows you followed a proper collections process, which strengthens your position in every negotiation and proceeding that follows.
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. 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.
FREQUENTLY ASKED.
