Subcontractors now wait an average of 96 days to get paid after submitting their invoices, according to Siteline's State of Subcontractor Billing in 2025 report. That's over three months between doing the work and receiving payment. Only 5% of subcontractors consistently receive payment on time, 75%+ cover vendor costs out of pocket while waiting, and 91% of general contractors now consider an owner's payment reputation when deciding whether to bid on projects. This payment c

A general contractor three weeks into excavation discovers unstable soil conditions. The property owner verbally approves additional foundation work $15,000 for the scope change. Six months later, that construction change order becomes a $45,000 payment dispute. Meanwhile, cash flow suffers, subcontractors threaten liens, and the line of credit reaches its limit. This scenario affects over 70% of construction companies experiencing cash flow disruptions from change order dela

Your next project budget could fail before you even break ground. Here's why: With construction spending growth plateauing at just 2%, the budget strategies that worked three years ago are now setting contractors up for losses. One miscalculation can be the difference between a profitable project and a financial disaster. When growth is this slow, you can't afford to budget the way you used to. This guide shows you exactly how successful contractors are protecting margins whe

Material costs just jumped 30% on your active project. Your fixed-price contract is bleeding money. Sound familiar? You're not alone. In 2026, construction material costs are rising 5-50% across key categories steel, lumber, concrete, and copper leading the surge. This isn't a temporary blip. It's the new reality shaped by tariffs, supply chain disruptions, and megaproject demand. Here's what this means for your business:  A 20% material cost increase can wipe out 50-70% of y

A single QuickBooks error cost one subcontractor $47,000 in unbilled change orders. Another GC discovered 23% of their projects were unprofitable but only after they'd already paid workers and vendors. These aren't rare disasters. They're everyday mistakes happening in construction companies right now. Here's the problem: QuickBooks wasn't built specifically for construction. Generic setups miss the nuances of job costing, retention, and progress billing. The result? You're m

An Orange County subcontractor recently lost $127,000 on a commercial project because they filed their mechanics lien on day 92, just two days past California's 90-day deadline. The property owner's attorney had the lien dismissed immediately. Two days late. $127,000 gone forever. This guide shows you exactly how to protect your payment rights in every state, so this never happens to you. You'll learn which deadlines matter, how states differ, and the specific steps to preser

Here's your cash flow crisis:  You pay suppliers in 30 days. Clients pay you in 60-90 days. That 30-60 day gap is draining your working capital and forcing you onto expensive credit lines. The opportunity most contractors miss:  A mid-sized GC negotiated Net 45 terms with just three suppliers and freed up $180,000 enough to fund two additional projects without touching their line of credit. What you'll master today:  The exact frameworks to negotiate Net 60, Net 90, or milest

A Irvine subcontractor lost $2M in bonding capacity in 48 hours. Their backlog was overstated by just 20% and their surety discovered it during routine review. Accurate backlog reporting isn't optional anymore.  It's the difference between landing that $5M project and watching your competitor take it because they had the bonding capacity and you didn't. This guide shows you exactly how to calculate, report, and manage your construction backlog the way banks and sureties deman

Change orders are inevitable in construction, but disputes over them don’t have to be. Every year, construction disputes cost the industry billions in legal fees, project delays, and damaged relationships. The primary culprit is rarely the work itself; it is poor change order accounting practices  that leave room for misunderstandings, miscalculations, and mistrust. If you are a construction owner, general contractor (GC), or subcontractor, you know the stakes. A single dispu

January 31st is your deadline. Miss it and you're paying $60 to $310 per form in penalties that's $15,500 down the drain if you manage 50 subcontractors. Here's what you'll get: A simple system to track subcontractor payments year-round, generate accurate 1099-NEC forms in minutes, and file electronically without stress. Why this matters to you: Beyond dodging fines, proper 1099 management protects your business during audits, keeps job costs accurate, and maintains trust wit

Overbilling in construction creates serious financial challenges that threaten your business survival. When you bill 70% on a job that's only 50% complete, you're not just making an accounting error, you're setting up cash shortages, damaging client relationships, and reducing your bonding capacity. Here's what's at stake:  Sureties scrutinize overbilling as a red flag for instability. Clients lose trust and may withhold payments. Your cash flow suffers later when you can't b

Last month, a mid-sized general contractor in Houston paid their concrete supplier twice. $18,000 disappeared before accounting caught the error. It wasn't a one-time mistake. Duplicate payments cost construction companies an average of $900 to $2,500 every single month. For a typical contractor processing 200–300 invoices monthly, that's $10,800 to $30,000 in lost profit annually. Here's why you should care: Unlike other business expenses you can control, duplicate payments

Your bonding company just rejected your financials. Your lender is asking questions about "contract assets" you've never heard of. Your CPA says you need to restate last year's revenue. The culprit? ASC 606 revenue recognition and you're doing it wrong. Here's what's at stake: contracts you can't bid on, loans you won't get, and financial statements nobody trusts. But here's the good news: once you understand ASC 606's five-step framework, you'll have cleaner books, better ca

In construction, equipment downtime can make or break a project. Even a brief period of equipment failure or delay can cause substantial setbacks, impacting project timelines, budgets, and ultimately reducing profitability. Knowing how to account for downtime and understanding the costs of lost productivity is crucial for keeping your projects on track and preventing financial losses. This guide will explain why tracking equipment downtime is essential, how to calculate lost

Right now, your superintendent has $200K in open POs for materials that haven't been invoiced yet. Your project manager signed a $150K subcontract last week that accounting hasn't entered. Your "profitable" $2M project? It's already over budget, but your reports won't show it until next month. This article shows you how to:  Track every dollar you've committed (not just spent), spot budget problems 60 days earlier, and use real-time data to save projects before they go underw

Your largest project is humming along. Crews are on schedule. The client is happy. Margins still look fine on paper. Then payroll week arrives, and your CFO delivers the news: there isn’t enough cash to cover next week. This situation is far more common in construction than most contractors admit. Projects don’t stop because companies are unprofitable. They stop because cash arrives too late to cover expenses that must be paid now. Many construction firms fail with full backl

Your project manager spends 20 minutes pulling a simple job cost report. Your accountant manually re-enters data across multiple systems just to produce a WIP report. Your leadership team doesn’t know which projects are profitable until weeks after the month end. These aren’t people's problems. They’re system problems . In construction, margins are thin and cash flow is unforgiving. Choosing the wrong ERP doesn’t just slow you down, it directly impacts profitability, decision

One missed payment. One unexpected material cost spike. One delayed project can send a construction company into a financial crisis. In an industry where profit margins average just 5-10% and cash flow issues cause 82% of business failures, financial oversight is the difference between thriving and closing your doors. Here's the problem:  Reviewing financials only once a year means flying blind for 11 months. But monthly reviews alone miss critical strategic trends. The solut