Cash flow

How much cash will this job eat before it pays you?

A profitable job can still drain your bank account. Answer 4 quick questions to see how deep the hole gets and when you climb out.

Your job

How big is the job?$ How many months will it run?months How many days does the GC or owner take to pay your bill?days How much do they hold back until the end?%That's retainage. Put 0 if they don't hold any. Cash you could put into this job (optional)$

Fine-tune (optional)

We filled these with common numbers. Change any you know.

What the job costs you, as a % of the contract%80% leaves you 20% gross profit, before overhead. Days after the job ends until retainage is paiddays Days until you pay your crews, subs and suppliersdaysPayroll goes out every week or two, and suppliers often give you 30 days. Use the average.

Answer the questions above to see how much cash this job needs from you.

Example: a $600,000, six-month job

The GC pays 45 days after each bill and holds back 10% until 60 days after the job ends. The job costs 80% of the contract, bills get paid in 15 days, and the owner has $100,000 set aside.

Month by month

Month	Paid out	Came in	Your cash in the job

"Your cash in the job" is where you stand at the end of each month. A negative number is money you've fronted.

Book a call about your job's cash gap

Assumes the work and its cost are spread evenly over the job, you bill every 30 days, and nothing slips. Retainage arrives no earlier than the last progress payment. Change orders, deposits and slow pay make the hole deeper or shallower. If you hold back retainage from your own subs, your real hole is a little smaller than shown.

Estimates for planning only, not financial advice.

Air Industries LLC