Working Capital · Construction Finance · Cash Position · Balance Sheet Management
Working Capital · Construction Finance · Cash Management · Balance Sheet · Growth Capital
Construction Working
Capital Management.
Working capital is the oxygen of a construction business. When it's adequate, everything works — you can mobilize new projects, absorb slow GC payments, and build toward growth. When it's depleted, everything becomes a crisis. Most subcontractors manage working capital reactively — building it when times are good and spending it when times are tight. Here's how to manage it deliberately.
Schedule a Free Call →
See Pricing
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
Working Capital Gets Distributed Instead of Retained
A profitable year generates working capital. Most of it gets distributed — owner draws, bonuses, equipment purchases — before anyone calculates what the business needs to keep on hand. The next year starts with the same working capital as the year before, regardless of how profitable the prior year was. Working capital doesn't grow because profit doesn't stay in the business.
02
You Don't Know Your Working Capital Number
Working capital is current assets minus current liabilities. Most subcontractors don't know this number today — not because it's hidden, but because nobody has calculated and monitored it monthly. Without knowing the current number, you can't know whether it's growing, shrinking, or adequate for your bonding and growth needs.
03
Working Capital Requirements Grow With Revenue
A $3M subcontractor needs less working capital than an $8M subcontractor — not just in dollars, but as a percentage of revenue. As you take on larger projects, pay-when-paid exposure grows, mobilization costs increase, and the working capital required to fund operations between billing and collection scales with revenue. Contractors who grow revenue without growing working capital run into cash crises at exactly the wrong time.
How SPM Fixes It
The Working Capital Target — How Much Is Enough
A common benchmark is 10–15% of annual revenue in working capital. A $5M contractor should target $500K–$750K in working capital. This supports a bonding program of $5M–$11M in aggregate bonded work (at $10–$15 per dollar of working capital), provides 6–8 weeks of overhead coverage as a buffer, and allows for normal pay-when-paid delays without a credit line draw. Your specific target depends on your trade, bonding program goals, and seasonal pattern.
Building Working Capital Deliberately
Working capital grows through retained earnings — keeping profit in the business rather than distributing it. SPM helps Executive clients calculate the distribution amount that leaves working capital intact and growing. Not zero distributions — but distributions that are sized based on what the business needs to retain, not what's left over after everything else.
Working Capital Tracked Monthly in Both Tiers
SPM calculates and reports working capital monthly for all clients — Core and Executive. When working capital is declining relative to revenue or below bonding targets, it surfaces in the monthly meeting with a specific explanation and recommendation. Working capital isn't a year-end number — it's a monthly managed metric.
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.
Does buying equipment reduce working capital?
It depends on how you buy it. Purchasing equipment with cash reduces current assets directly — reducing working capital. Financing equipment with a loan adds a long-term asset and long-term debt — which may not immediately impact working capital, but increases the current portion of debt and future cash obligations. SPM factors working capital impact into equipment purchase decisions for Executive clients.
How does accounts receivable affect working capital?
AR is a current asset — it's part of the working capital calculation. Faster AR collection improves working capital without requiring retained earnings. A contractor who collects in 45 days instead of 75 days on $500K of active AR has $14K more in working capital just from the timing improvement — and that compounds across every pay app cycle. Active AR management is one of the fastest ways to improve working capital without changing the P&L at all.
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.