FRACTIONAL OR FULL-TIME CONTROLLER? COUNT THE HOURS OF REAL WORK FIRST.
A fractional controller fits most subcontractors between $1M and $12M, because the controller work in a business that size takes days a month, and a full week only shows on the calendar when there are many active jobs, several entities or an audit. A full-time controller becomes the better buy once the review, WIP and cost to complete work fills most of a week, every week, and the business can pay a construction-experienced person what that person costs.
The Bureau of Labor Statistics puts the median pay for financial managers, the occupation that includes controllers, at $166,570 a year as of May 2025. Add payroll taxes, benefits and the months it takes a new hire to learn your jobs, and the first year of a full-time controller costs well past that figure. A fractional controller is billed monthly for the function, so the owner pays for the close review, the WIP schedule and the cost to complete conversation and skips the headcount. The decision comes down to volume. Count the hours of controller work a month, price them both ways, and the answer is usually obvious.
WHAT EACH ONE DOES.
| Capability | Fractional controller | Full-time controller |
|---|---|---|
| Typical cost | A monthly fee for the function | Salary plus taxes, benefits and recruiting |
| Best fit by revenue | About $1M to $12M with one entity | Usually above $12M, or several entities |
| Construction experience | Comes with the firm you pick | Depends entirely on who you hire |
| Time to useful | The first close after onboarding | Several months while they learn the jobs |
| Owns the WIP schedule | Reviews and signs it off monthly | Builds and owns it every month |
| Supervises AP and AR staff | Sets the process and reviews it | Manages the staff day to day |
| When the person leaves | The firm covers the work | The knowledge leaves unless it was written down |
| Where it goes wrong | No one in the office to enforce coding at entry | Paying a salary for a week of work spread across a month |
Median pay is the BLS figure for financial managers, May 2025. Fractional fees vary by firm and scope, so compare quotes against the same list of monthly tasks.
WHEN THE WORK IS DAYS A MONTH, A FEE BEATS A SALARY.
A fractional controller reviews the month-end close, signs off the WIP schedule, checks the balance sheet against what is happening in the field and meets with the owner to go over cost to complete. The bookkeeper keeps doing the daily entry. The controller confirms the record is right before anyone makes a decision from it.
This fits a subcontractor with one entity, ten to forty active jobs and a bookkeeper who can keep the record current. The owner gets someone who has closed construction books before, and the work continues when a person goes on vacation or leaves, because the firm covers it.
WHEN THE WORK FILLS THE WEEK, HIRE THE PERSON.
A full-time controller makes sense when the review, reconciliation and reporting work takes most of a week every week. That usually means many active jobs, more than one entity, a bonding program that asks for reviewed or audited statements, and a team of AP and AR staff who need a supervisor in the building.
The hire only works when the person has done construction accounting before. A controller from a distribution company or a services firm knows debits and credits and still has to learn retainage, over and under billings, cost to complete and certified payroll on your dollar.
WHERE WE COME OUT.
Below about $12M with one entity, most subcontractors get more from a fractional controller and a solid bookkeeper than from one full-time hire. The money that would have gone to a salary pays for a construction-experienced review every month, and the owner keeps the bookkeeper who already knows the vendors.
Above that, or once there are several entities, a bonding program that wants reviewed statements and a back office of three or more people, the full-time hire starts to win. Many companies use a fractional controller to build the job cost structure and the close process first, then hire into a job that is already defined.
Either way, write down the monthly controller tasks before you shop. A list of what has to happen every month is how you price both options on the same basis.
FREQUENTLY ASKED.
