Cash flow problems are the number-one reason many construction businesses fail. The issue is rarely craftsmanship. It is the gap between when money goes out and when money comes in.
Three killers show up again and again: holdbacks that trap working capital, HST timing that forces remittance before collection, and change orders handled verbally until revenue turns into a dispute.
A weekly rolling 8-week cash-flow forecast is one of the highest-leverage habits a contractor can adopt. It turns financial surprises into visible risks you can manage early.
Tighter invoicing cadence matters more than most owners think. Invoicing earlier and more consistently compounds across the year into real liquidity improvement.
Every change order should be written, priced, and confirmed before work moves. That single discipline can recover meaningful revenue that otherwise disappears into negotiation limbo.
A business line of credit should be arranged while the company looks healthy, not when the owner is already cornered. A buffer is protection, not failure.