Construction project cash flow forecast
Construction forecasts often depend on progress billing, retention, material purchases, subcontractor payments, and loan timing. This guide is for searches such as “construction project cash flow forecast” and “progress billing cash flow.”
How do I forecast construction project cash flow?
- Contract amount, milestone billing, progress billing, and collection lag.
- Subcontractor costs, materials, equipment rental, payroll, and site overhead.
- Retention receivable, advance payment, deposits, and change orders.
- Working capital loans, repayment schedule, and interest expense.
Forecast review points
A project can be profitable but still require financing. Model accounts receivable, retention receivable, accounts payable, debt, interest, and ending cash together before sharing a forecast with a lender or project owner.