Why profitable contractors run out of cash.
Your P&L says you're winning. Your bank says you're losing. This is the single most common story in construction — and it has nothing to do with profitability. It's cash flow timing. Here's how to fix it.
Four reasons good contractors go broke.
Materials get paid before you get paid
You order lumber in week 1 and pay net-30. The draw that covers that lumber hits in week 6 or 7. For 4 weeks, you're financing the job yourself. Multiply by every open job.
Draws are lumpy; payroll isn't
Your crew needs to get paid every Friday. Your draws land every 2–4 weeks on a lender's schedule. The gaps are where cash disappears.
Retainage holds back 10% forever
Most jobs hold back 5–10% retainage until final completion. On a $500K job, that's $25K–$50K sitting with the owner. Across multiple jobs, it's real money you can't touch.
Change orders lag the work
Extra work gets done in week 3. Change order gets written in week 5. Approved in week 6. Billed in week 7. Paid in week 10. Meanwhile you already paid the crew in week 3.
The 13-week rolling cash forecast.
A 13-week cash forecast shows your cash position week by week, 90 days out. Updated weekly so it rolls forward. It's the single most important report a growing contractor can have — more important than your P&L.
It answers one question: on what day will I run out of cash? And that lets you move early — call the lender, push payroll, delay a material order, accelerate a draw — weeks before the crunch hits instead of the Friday morning it lands.
Ten inputs. Weekly. Every one matters.
- 01Opening cash balance
- 02Expected draws by job, week by week
- 03Expected retainage releases
- 04Other AR collection (change orders, progress billings)
- 05Payroll, including burden
- 06Subcontractor payments by due date
- 07Material bills by due date
- 08Loan / equipment payments
- 09Owner draws, taxes, insurance
- 10Fixed overhead (rent, software, utilities)
Most contractors try to build this in Excel and give up after 2 weeks because it's tedious. We build it for BuilderCFO clients and update it every Friday — so by Monday morning, you know exactly where your cash is going for the next 90 days.
You'll meet with
Cory Salisbury
Want a 13-week map for your business?
Book a free 30-minute call. Bring your cash balance, open jobs, and payroll schedule. We'll build a sample on the call.
What we'll cover
- A 10-minute look at where your numbers are today.
- 3 specific profit leaks I'd chase first for a business your size.
- Whether we're a fit — honest yes or no, no pressure either way.
Pick a date
Weekdays, 11:00 AM – 2:00 PM MT
“Recovered $34,000 in forgotten retainage in Q1.” — Rachel K. · specialty trade, 8 GCs