How to Build a 13-Week Cash Flow Forecast for Construction
Profitable contractors still run out of cash. A week-by-week forecast built from pay apps, retainage, and payroll shows the crunch before it hits.
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BuildFlash Finance Team · 7 min read
Construction cash moves in lumps: payroll every week, pay apps once a month, retainage at the end. A 13-week forecast maps those lumps so you know when you'll be tight and how much room you have to take on new work.
Why 13 weeks
Thirteen weeks is one quarter, long enough to see past the next pay cycle and short enough to forecast with real numbers rather than guesses.
Forecast cash in
- Approved pay applications and their expected payment dates
- Upcoming billings from the schedule of values
- Retainage releases tied to substantial completion
- Change orders only once they're approved
Forecast cash out
- Weekly payroll and burden
- Subcontractor and supplier payments, net of retainage payable
- Equipment, loan, and lease payments
- Insurance, taxes, and overhead