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--------- In this video, Josh — The Construction CFO — walks through the exact cash flow forecasting system used with contractors in 2026. This is the same 13-week cash flow forecast template used every month with SPM clients, and it has been implemented by thousands of contractors ranging from small operators to companies doing $30M+ in revenue. This isn’t theory or “thought leadership.” It’s the actual spreadsheet system used to run construction businesses and prevent cash flow surprises. The process starts by calculating true overhead, then moves into a 13-week rolling cash flow forecast that shows exactly: • When money will come in • When expenses will hit • Which projects must pay to avoid a cash shortage • When loans, credit cards, and equipment payments hit • How to plan payroll, vendors, and growth safely Most contractors run into problems because they track revenue and profit on a P&L, but they don’t track timing of cash. This forecast solves that. What This Video Covers 1. Calculating True Overhead The system begins with a full breakdown of monthly operating expenses, including: • Office rent and utilities • Software subscriptions • Insurance (general liability, workers comp, vehicle) • Payroll services and accounting • Fuel and equipment maintenance • Fleet tracking and vehicle costs • Administrative salaries For the example contractor in this walkthrough, the business has about $891,000 in annual overhead. That means if the company wants overhead to equal 10% of revenue, they need to produce roughly $8.9M in revenue. This is why many contractors unknowingly break even — they bid jobs using generic markup (like 10% overhead + 5% profit) without knowing their real overhead percentage. 2. Why Contractors Run Out of Cash A contractor may look profitable on paper but still run out of cash because: • Payment terms delay collections • Retention slows cash inflow • Payroll and vendors must be paid weekly • Large material purchases hit before payment arrives That timing gap is what the 13-week forecast solves. 3. The 13-Week Cash Flow Forecast The forecast starts with the current bank balance and then tracks weekly activity for the next three months. Each week includes: Cash In • Expected project payments • Based on actual collection timing (not just invoices) Cash Out • Overhead expenses • Payroll • Materials and vendors • Subcontractors • Equipment rental Debt & Financing • Credit cards • Equipment loans • SBA loans • Owner draws • Line of credit usage 4. Tracking Cash by Project Instead of guessing when revenue arrives, the forecast tracks cash collections by project. This allows contractors to see: • Which jobs must pay this week • Which invoices to follow up on • Which project managers need to push paperwork Most companies discover they must actively manage collections weekly to avoid a cash crunch. 5. Planning Around Cash Shortages The forecast also allows contractors to simulate real-world scenarios: • A delayed payment • A large vendor bill • A subcontractor lien notice • Unexpected expenses When cash runs short, the spreadsheet shows exactly when a line of credit must be used and when it will be paid back. This removes the guesswork and prevents payroll crises. 6. Why This Forecast Must Be Updated Monthly The first setup takes about 60–90 minutes, but once built it can be updated in about an hour each month. Most contractors use it to: • Identify the next 3 weeks of critical collections • Plan vendor payments • Avoid surprise cash shortages • Safely grow revenue without running out of money Without this system, many contractors grow revenue but destroy their cash flow, which is why growth can become the biggest risk in construction businesses. Who This Is For This system is designed for: • Construction company owners • Civil and subcontracting companies • Contractors between $3M – $20M revenue • Businesses that want predictable cash flow Download the Template The spreadsheet used in this video is linked below so you can build your own 13-week cash flow forecast and start managing cash the way professional contractors do. If you want help implementing this system in your company, reach out to SPM – The Construction CFO. --------- Struggling with cash flow? On this channel, I give advice for subcontractors to fix cash flow through construction finances and operations. Subscribe for free actionable tips! #construction #subcontractor #cashflow #constructionaccounting #CashFlowForecasting #ConstructionFinance #CashFlowTemplate