What construction cash flow tools are available for subcontractors?

SPM offers a 13-week cash flow forecast template ($49), a done-with-you cash flow forecast built from your actual numbers ($500), a hands-on cash flow intervention engagement ($2,500), a free Pay App 1 Calculator, and a free Pay-When-Paid Bid Markup Calculator. All tools are built specifically for subcontractors managing pay-when-paid terms and front-loaded job costs.

How do subcontractors fix cash flow problems?

Most subcontractor cash flow problems come from timing — not profitability. The fix starts with forecasting when cash goes out and when it comes in at the job level, pricing financing costs into bids on slow-pay contracts, front-loading the schedule of values on Pay App 1, and tracking job costs against estimates in real time.

What is the difference between a cash flow forecast and a P&L for a construction company?

A P&L shows whether the business made money over a period of time. A cash flow forecast shows when money actually moves in and out of the bank account. In construction those two things can look completely different in the same month — a profitable job can drain cash for 60 days before the first check arrives.

How far out should a subcontractor forecast cash flow?

Thirteen weeks is the standard for subcontractors. That window covers one full billing cycle on most jobs, captures payroll obligations, AP due dates, and upcoming mobilization costs, and gives enough lead time to act before a cash shortfall hits.

What is a 13-week cash flow forecast for construction?

A 13-week cash flow forecast shows a subcontractor exactly where cash is exposed over the next quarter — week by week. It maps when billings go out, when collections come in, when payroll and AP are due, and how much working capital is available at any point. It is the difference between reacting to a cash crisis and seeing it coming three months out.

Why do subcontractors need a cash flow forecast?

Because the P&L does not tell you when the cash runs out. A subcontractor can be profitable on paper and unable to make payroll. A cash flow forecast maps the timing of every dollar in and out so the owner knows what is coming before it hits.

How do I build a cash flow forecast for a construction company?

Start with your active jobs and map out when each billing goes out and when you expect to collect. Layer in your fixed overhead — payroll, rent, insurance, equipment payments. Then add AP due dates for materials and subs. The difference between inflows and outflows each week is your cash position. SPM's 13-week template does this structure for you.

What is a done-with-you cash flow forecast for construction?

A done-with-you forecast means SPM builds the cash flow model alongside the owner using their actual job data, billing schedule, and payment terms — not a generic template. The result is a working forecast the owner understands and can update themselves going forward.

When should a subcontractor hire someone to build their cash flow forecast?

When the template approach is not getting done, when the business has multiple active jobs with different billing cycles, or when the owner has been surprised by a cash shortfall more than once. At that point the cost of not having a forecast is higher than the cost of getting one built properly.

What is a construction cash flow intervention?

A cash flow intervention is a focused engagement where a construction CFO examines the specific points where cash is getting stuck in a subcontracting business. This includes billing cycle gaps, slow collections, AP pileup, retention, and job cost overruns. The output is a clear diagnosis and action plan — not a bookkeeping cleanup.

How do you fix cash flow in a construction company?

Fix starts with finding where cash is stuck — not just looking at the bank balance. Common causes are billing too slowly, not front-loading the schedule of values, ignoring pay-when-paid financing cost, letting retention pile up, and failing to cut costs on jobs running over budget. SPM's cash flow intervention identifies the specific cause for each business and builds the fix around it.

How do I know if my construction company needs a cash flow intervention?

If you have been profitable on paper but short on cash, if AP is piling up while you wait on collections, if you have come close to missing payroll, or if you cannot tell which jobs are making money — those are all signs the cash flow structure needs a hard look before it becomes a crisis.