From the numbers to the change
- Your numbers sayProjects show profit, receivables and retention keep growing, limits are blocked by guarantees
- The cause underneathWork done ahead of billing, slow certification, retention held, cost overruns found late
- What changesProject-wise margin tracking, a billing and certification drive, claims discipline
- What to expectCash released from retention and bills; margins visible by project
An illustration of how the thinking runs, not a client result.
The numbers that matter most here
Run these per project, not just in total.
| Number | Why it matters in this business |
|---|---|
| Estimated margin vs actual to date | Overruns appear in the cost to complete before they appear in profit |
| Work done not yet billed | Cash earned but not yet claimable |
| Billed not yet paid, and retention | The real working capital tied to each client |
| Bank guarantee exposure | Guarantees consume limit and margin money |
| Subcontractor and supplier payables | Pressure builds from the other side |
What trouble usually looks like
| The numbers show | The cause is often |
|---|---|
| Profit on paper, cash short | Billing lag, certification delays, retention accumulating |
| Margin falling late in the project | Cost to complete under-estimated; variations not claimed |
| Limit full with few projects | Guarantees and margin money locked |
| Disputes growing | Claims not documented in time |
How we would sequence a turnaround
Rebuild project-wise cost-to-complete
for every site.
Billing drive:
clear work-done-not-billed and chase certifications.
Claim variations and extra work
with documents, early.
Review guarantees
and release or replace where possible.
Stop or restrict loss-making projects,
and choose bids by margin and payment record.
Business under pressure? Let a CFO read your numbers.
A senior CFO reads them with you and tells you what is really going on. No cost, no obligation.
What is specific to construction
Cash in construction depends on documents: measurements, certificates, variation orders. A contractor with good paperwork is a different business from one without, even when the work is identical. Many of the fixes are administrative and quick.
Related reading
On the main CFOSurge India site: Construction, EPC and contractors CFO services · 13-week cash flow forecast.
CFOAvatar complements every turnaround
A human CFO sees your business at the review. Problems do not wait for the meeting. CFOAvatar is connected to your accounting data and checks your numbers every day, so the scoreboard in a turnaround is always current. Ask it what an owner in trouble would ask:
What owners say after the numbers started talking
What truly sets them apart is their ability to dive into the details—cash flow, operations, and compliance—while simultaneously offering strategic insight that supports long-term decision-making. Their guidance has always been practical, thoughtful, and tailored to our specific needs rather than one-size-fits-all solutions.
They even worked with us to finetune our software (Gross Mart) so we could get micro-level details on various aspects of the business. On top of that, they streamlined our receivables follow-up process and provided valuable guidance on bank loans and valuations.
Their structured MIS reports have given us clear visibility into our business performance, enabling faster and more informed decisions. The budgeting and cash flow monitoring system introduced by their team has helped us plan our funds more effectively and manage our operations with greater confidence.
Quoted word for word from our clients. Read more client words →
Questions owners ask us
Why do I have no cash though projects are profitable?
Profit is booked as work progresses; cash arrives on certification and payment, with retention held back. The gap, plus guarantees, absorbs cash.
What is retention money?
A part of each bill held by the client until completion or a defects period, which adds to your working capital need.
Can you help with claims?
We help with the numbers and records behind them. Legal claims need legal advisors.