Business Case: Construction

Construction

Result: Freed up $150K to $300K in cash by reducing collections by 20 plus days

The situation
The company had strong revenue but cash pressure. Average collection time was sitting around 55 days. Industry benchmarks for specialty construction typically fall between 60 and 90 days, but best run operators push closer to 30 to 40 days by staying tight on billing discipline and follow up.

What we did
We built a rolling 13 week cash flow forecast, one of the core CFO Practice methods.

How it worked step by step

1. Mapped weekly inflows tied directly to open invoices, not accounting revenue

2. Ranked customers by payment behavior and aging

3. Tied forecast gaps directly to specific overdue invoices

4. Implemented a simple weekly AR review tied to the forecast

5. Reset expectations with customers who were consistently late