Industry Expertise
CFO Services for Construction Companies
Job costing, WIP accounting, bonding support, and project-based financial management for contractors.
Do you understand construction accounting?
Absolutely. Construction is one of our specialties. We understand job costing, percentage-of-completion accounting, WIP schedules, AIA billing, bonding requirements, and the unique cash flow challenges of project-based work. We've worked with general contractors, specialty trades, residential builders, and commercial developers.
Financial Leadership Built for Construction
Construction companies face financial challenges unlike any other industry. The project-based nature of the work, the timing mismatch between expenses and collections, the complexity of percentage-of-completion accounting, and the critical importance of bonding capacity all require specialized financial expertise that general-purpose CFOs rarely possess.
At 1CFO, construction is one of our core specialties. We've worked with general contractors, specialty trades, residential builders, and commercial developers across the country. We understand the unique rhythms of construction finance—the cash flow challenges, the bonding requirements, the relationship dynamics with owners, GCs, and subcontractors that determine who gets paid and when.
Our fractional CFO services for construction companies go beyond basic bookkeeping and reporting. We help you understand true job profitability, improve WIP management, increase bonding capacity, and build the financial infrastructure that supports sustainable growth. Whether you're a $2M subcontractor or a $50M general contractor, we bring the expertise to help you succeed.
Ready to Transform Your Finances?
Get a free consultation with a CFO who specializes in construction.
Serving businesses from $2M to $50M+
Specialized Expertise
Residential Contractors
Job costing, cash flow management, and financial planning for custom home builders and residential contractors.
Commercial Contractors
WIP reporting, bonding capacity, and lien management for commercial general contractors and developers.
Subcontractors
Cash flow timing, retainage management, and profitability analysis for electrical, plumbing, HVAC, and specialty trade contractors.
How We Help Construction
Our specialized CFO services address the unique financial challenges of your industry.
Job Costing Excellence
True profitability analysis by project, job type, and customer. We help you understand which work makes money and which doesn't—so you can bid smarter and grow profitably.
WIP Accounting Mastery
Accurate percentage-of-completion reporting that satisfies your CPA, banker, and surety. We help you understand overbillings, underbillings, and their implications for your business.
Bonding Capacity Growth
Strategic financial positioning to increase single and aggregate bonding limits. We work with your surety to present your company in the best possible light.
Cash Flow Management
Navigate construction's lumpy cash flow with forecasting, line management, and strategic billing. We help you avoid the cash crunches that derail construction companies.
Banking Relationships
Financial packages and presentations that strengthen banking relationships. We help you access the credit facilities you need to grow.
Project Selection Strategy
Financial analysis to support go/no-go decisions on projects. We help you pursue the work that fits your capabilities and profitability targets.
The Construction Financial Landscape
The construction industry operates by financial rules that would seem bizarre to most business people. You might win a job but lose money on it. You might complete work but not get paid for months. You might have a profitable year on paper but face a cash crisis. Understanding these dynamics is essential for construction financial management.
The construction accounting framework—percentage of completion, job costing, work in progress schedules—exists because the industry's reality doesn't fit neatly into standard accounting. A project that takes 18 months to complete can't be accounted for the same way as a retail business that sells products daily. The systems that track construction profitability are necessarily more complex than those in most industries.
This complexity creates both challenges and opportunities. Construction companies with sophisticated financial management outperform their peers. They bid more accurately, identify problem jobs earlier, maintain stronger banking and surety relationships, and make better strategic decisions. Financial sophistication is a genuine competitive advantage in construction.
Why Work with a Construction Financial Specialist?
Construction financial management requires industry-specific knowledge that most CFOs don't have. The terminology is different—WIP, G&A allocation, over/underbillings, retainage. The accounting methods are different—percentage of completion vs. completed contract. The key relationships are different—sureties, bonding agents, construction lenders.
Our team has deep experience specifically with construction companies. We understand how to prepare WIP schedules that satisfy both your CPA and your surety. We know what banks look for in construction lending. We can identify troubled jobs through the numbers before they become visible in the field. We understand the cash flow patterns of different types of construction work and how to plan accordingly.
We also understand construction's relationship dynamics. We know how to manage the financial aspects of GC/sub relationships, how to handle retainage disputes, and how to position your company for the types of work you want to pursue. This contextual knowledge informs our financial guidance in ways that matter for your success.
Construction Financial Challenges We Solve
Common pain points we help eliminate for construction businesses.
Cash Flow Timing
Pay cycles don't match billing cycles. You pay subs and suppliers long before you collect from owners. Managing this mismatch requires constant attention and careful planning.
Change Order Management
Capturing, pricing, and billing additional work is often the difference between profitable and unprofitable jobs. Many contractors leave money on the table through poor change order discipline.
Retainage Recovery
Cash tied up in holdbacks can represent significant working capital. Tracking and recovering retainage requires systems and attention.
Project Risk Identification
Troubled jobs often don't look troubled until it's too late. Financial analysis can identify warning signs earlier than field observation alone.
Bonding Constraints
Limited bonding capacity constrains growth for many contractors. Improving financial positioning can unlock additional capacity.
Overhead Recovery
Understanding and allocating G&A costs appropriately is essential for accurate job costing and competitive bidding.
Frequently Asked Questions
Recommended Services
Ready to Transform Your Construction Finances?
Schedule a free consultation to discuss your specific challenges and learn how our CFO services can help your construction business thrive.