General Contractor Plan: Profit, Cost to Complete and Progress Cash

A profitable contract can leave no cash cushion during delivery. Before accepting another project, forecast the remaining cost and the dates money can actually be collected, then check who will supervise both jobs.

Paid invoices are not the final job cost

Separate costs incurred, commitments not yet paid and work still to buy. Keep approved contract changes distinct from requests still awaiting agreement. A favorable current bank balance can coexist with an unfavorable cost-to-complete estimate.

A $20,000 result can have zero interim headroom

Original assumptions, $ for one accepted contract. Contract value is $100,000, job costs $70,000 and assigned company overhead $10,000. Opening cash is $30,000. The project requires the available qualified supervisor throughout; no second job is assumed.

Day 0 pays $40,000 of job costs plus $10,000 overhead; day 45 pays the remaining $30,000 job cost. Final cash is opening $30,000 plus the $20,000 result. Minimum cash is zero, so all selected starting funds are committed.

Stress approval and cost separately

If the day 30 receipt moves to day 50 while the day 45 payment stays due, cash falls to negative $30,000. The final profit is unchanged, but delivery needs another $30,000 until collection. Separately, an unpaid $6,000 cost overrun lowers expected profit to $14,000; do not call it harmless merely because no invoice has arrived.

Map every progress trigger and retained balance to accepted terms. Obtain a current remaining-cost estimate and a supervision calendar before adding work. The General Contractor Financial Model provides a broader operating forecast; keep this contract-specific cash and cost-to-complete schedule alongside it.