How to Fix Your Construction Business Before It’s Too Late Insights from Timothy Wingate Jr.
- Construction Champions Podcast
- 11 hours ago
- 3 min read
If you’re a contractor, cash flow is everything, but most construction businesses have no idea how much they’re actually making. Many end up financing jobs for free, relying on broken invoicing systems, and failing to track finances the way any other successful business would.
In this episode of the Construction Champions Podcast, Timothy Wingate Jr. shares why contractors struggle financially and how to fix it before it’s too late.
1. Rethink Your Payment Schedule
The Problem:
The common practice of taking 50% upfront and 50% at the end is one of the biggest killers of construction business cash flow.
The Solution:
Use milestone-based billing that ties payments to clear project stages.
Break up payments to align with expenses such as labor, materials, and subcontractor payments.
Ensure every payment request is supported by clear documentation and deliverables.
Key Takeaway: A structured payment plan ensures cash keeps flowing throughout the project and reduces financial strain.
2. Move Beyond Cash-Based Accounting
The Problem:
Many contractors operate on a cash basis and have no accurate view of how much money they’re owed or how much they owe others.
The Solution:
Implement accrual accounting to get a clearer picture of actual profitability.
Use job costing reports to see what each project is earning versus spending.
Work with a construction-savvy bookkeeper or CPA to monitor your financial health.
Key Takeaway: Financial visibility is key to making smart decisions and growing a profitable business.
3. Fix Your Invoicing System
The Problem:
Delayed payments often stem from inconsistent or unclear invoicing, not slow-paying clients.
The Solution:
Create a consistent invoicing process with clear terms and due dates.
Send invoices promptly and follow up with reminders.
Use software that tracks outstanding invoices and flags overdue accounts.
Key Takeaway: Invoicing is your most important job, treat it like one.
4. Track Every Project’s True Costs
The Problem:
Contractors often don’t know what each job actually costs to complete. This leads to underbidding, reduced margins, and surprises at the end.
The Solution:
Track labor, materials, equipment, and subcontractor costs for each job.
Compare estimates vs. actuals to refine future bids.
Use technology to automate job costing and avoid manual errors.
Key Takeaway: If you can’t measure it, you can’t manage it—and you can’t improve your profits.
5. Treat Your Construction Business Like a Business
The Problem:
Too many contractors operate reactively without systems, reports, or financial planning.
The Solution:
Implement financial systems for reporting, budgeting, and forecasting.
Create standard workflows for estimating, job costing, and invoicing.
Review financial reports monthly to make proactive decisions.
Key Takeaway: You’re not just a builder, you’re a business owner. And businesses need systems to survive and thrive.
Final Thoughts: Get Control Before It’s Too Late
Many construction businesses fail not because they lack skill, but because they lack structure. Financial chaos is avoidable, but only if you put the right systems in place.
Break jobs into billing milestones
Stop guessing on costs track everything
Fix your invoicing process
Get professional help with your books
This episode is a wake-up call for any contractor who wants to stop struggling and start thriving.
Watch the full episode here:
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How to Fix Your Construction Business Before It’s Too Late Insights from Timothy Wingate Jr.
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construction accounting, Timothy Wingate Jr, cash flow for contractors, construction business success, invoicing tips, payment schedules for contractors, subcontractor management, contractor profit margins, financial planning for construction, construction champions podcast, Ron Nussbaum