ELECTRICAL SUBCONTRACTOR CASH GAP BEFORE FIRST PAYMENT.
The average commercial electrical subcontractor deploys costs for 73 days before the first check clears. Switchgear deposit on day one. Mobilization week two. Rough-in labor and conduit material weeks two through six. First pay app submitted at the end of month one, then GC billing to the owner, owner payment, GC processing, and a check in the bank at day 73. Every one of those days is funded by the LOC, by cash reserves, or by both. Understanding the 73 day cycle is a business planning exercise rather than a problem-solving one, because every commercial electrical project has it. The questions are whether the LOC is sized to cover it, whether the mobilization SOV line recovers some of it early, and whether stored materials billing is in the contract to recover the switchgear deposit before installation.
Nothing on that timeline is a mistake. The gear doesn't reach the site until week 14, the GC has a billing cut-off that ignores your progress, and the owner pays on his own cycle. That's the trade in commercial electrical work. What separates the contractor who runs it comfortably from the one who maxes the line in month two is three contract terms and one forecast, all of which get decided before mobilization. After mobilization the only tool left is borrowing, and borrowing at week six costs more than negotiating at signing.
WHAT IT MEANS.
The 73 day cycle before first payment is the stretch where a commercial electrical subcontractor funds switchgear deposits, mobilization, and rough-in labor out of its own cash or line of credit before the first check clears.
WHAT HAPPENS BETWEEN CONTRACT SIGNING AND FIRST PAYMENT.
The switchgear deposit goes out on day one and can't be billed until week 18
The deposit is paid the day the contract is signed and the order goes in, which is $42,000 out of cash immediately. The gear doesn't reach the site until week 14, when the balance due on delivery is another $58,000, and none of it can be billed until it's installed in week 18. That's four months of carrying somebody else's equipment on your line of credit.
The GC's billing cut-off decides when you can bill, not your progress
The first pay app goes in at week 4, but the GC's billing cut-off was week 3, so the next one is week 7 and everything built in between waits. Overhead runs at $8,000 a week the whole time, and the underground conduit order took another $18,000 in material deposits at week 3. By week 8, with a second pay app submitted, cash deployed is $124,000 or more and no checks have been received.
One project can max the whole line
By week 14, most electrical contractors have deployed $180,000 or more on a $480K contract and collected $48,000. The $132,000 difference is funded by the LOC. On a contractor with a $250,000 LOC and two other active projects, this one job can max the line before the switchgear is even installed.
WHAT IT LOOKS LIKE IN DOLLARS.
Day 1, contract signed and switchgear ordered, deposit paid, $42,000 out of cash immediately. Week 2, mobilize with temporary power, site setup, and the first conduit runs, and overhead begins at $8,000 a week. Week 3, the underground conduit order for conduit, fittings, and pull boxes, $18,000 in material deposits. Week 4, first pay app submitted, though the GC billing cut-off was week 3 and the next cut-off is week 7.
Week 8, second pay app submitted, cash deployed so far $124,000 or more, still no checks received. Week 10, the first check comes in for pay app 1 at $48,000, with the LOC still drawn for the balance. Week 14, the switchgear reaches the site with $58,000 due on delivery, and it can't be billed until installation in week 18.
THREE TOOLS, IN ORDER OF IMPACT.
Negotiate a stored materials line into the SOV at contract signing. When the switchgear deposit is paid and the purchase order goes in with documentation, bill the stored materials line at the deposit amount. The GC approves it with a materials submittal, proof of purchase, and a lien waiver, so the deposit is recovered before installation. This is the single highest-impact change to electrical cash flow, because it turns a 6-month carrying cost into a 30-day billing event.
A mobilization line weighted at 8 to 10% of contract value covers temporary power, site setup, and initial procurement deposits. On a $480K contract, 9% mobilization is $43,200, billed when equipment is on site and temporary power is established. That covers the initial mobilization costs and reduces the LOC requirement in the first 30 days, before any production billing gets moving.
Calculate the peak LOC requirement before signing: switchgear deposit plus conduit order deposit plus the weeks of overhead and labor until first payment. That total is your minimum available LOC requirement. If current availability is below that number, either get an increase before mobilization or negotiate stored materials billing before signing, because finding the shortfall at week six means borrowing at the worst possible time.
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, and no add-ons.
| Last 12 months revenue | Monthly fee |
|---|---|
| Up to $1M | $1,900 to $2,900 |
| $1M to $3.5M | $2,600 to $3,900 |
| $3.5M to $6.5M | $3,800 to $5,700 |
| $6.5M to $9.5M | $5,100 to $7,100 |
| $9.5M to $12.5M | $6,100 to $8,500 |
| $12.5M to $15.5M | $7,400 to $11,000 |
| $15.5M to $18.5M | $9,400 to $13,500 |
| $18.5M+ | Quoted individually |
Range reflects the three tiers below. Which one you're in depends on how much of the work you want off your desk. No payroll. No hidden line items.
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 rather than a report.
Your bookkeeper keeps doing the books.
You stop touching the books.
Everything in Core, and we run the bookkeeping and the controllership as well. Nobody in your office is answering coding questions or chasing a reconciliation at month end.
We do the books. No payroll.
Every job shows its margin while it's still running.
Everything in Executive, plus the job costing and WIP platform set up, loaded with your cost codes, and managed for you every month. You never have to learn it.
We do the job costing.
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