Small-business accounting guide
Why Profitable Construction Companies Run Short of Cash
How timing, retainage, labor, and materials create construction cash-flow pressure.
Get the foundation right
Construction companies often pay labor and materials weeks before they collect the related invoice. Retainage delays part of the cash even longer.
Where owners get surprised
Unapproved change orders, slow billing, deposits recorded incorrectly, and jobs with poor cost-to-complete estimates can hide the pressure until payroll is due.
What to do next
Track billings, collections, retainage, committed costs, and estimated cost to complete by project. A rolling 13-week cash-flow forecast turns those timing differences into decisions.
General information only. Tax, payroll, and legal treatment depends on the specific facts and current requirements.