Cash is king. And if you're a PM, collecting it is your job.

Not the accountant’s. Not the CFO’s. Yours.

Construction is a low-margin game - 5% net if you’re lucky.
But when 10% of your revenue is tied up in retainage?
You’re financing the job.

Meanwhile, suppliers want payment in 30 days.
Your subs are dealing with the same stress you are.
And you're showing up Day 1 with iron, labor, fuel - all on your dime.

You’re not a bank. The owner (or GC) is supposed to finance the work.
Your job is to execute - and get paid.

✅ 9 Rules for Getting Paid On Time

1. Set the tone at kickoff
Be clear and direct: “We expect to be paid promptly for completed work.” Everyone on the team should know this.

2. Know your contract
The work starts in the pre construction phase. Don’t sign a bad deal.

Payment terms. Notice clauses. Required forms. It’s your job to know it cold. You expect to get paid on time for work that was done satisfactorily according to the contract: nothing more, nothing less.

3. Walk the job daily
Field managers meet with inspectors or owner reps every day. Quantities get agreed upon daily - not just at the end of the month.

4. Don’t work for free
Extra work? No go without prior sign-off.

This is easier said than done and depends on the size of the change order and contract terms. But you shouldn’t ever do major work without a signed change order unless it’s a known dispute and your management team is bought in on the strategy.

5. Lock in your billing process
One team member owns the invoice.
You (as PM) review the cost report and invoice monthly - before the estimate is cut. If there’s a discrepancy, fix it first.

6. Have regular AR reviews
Send out a recurring “Aging by Job” report. Everyone sees how long it’s taking to collect - by PM, by owner, by GC.

7. Make it a scoreboard
Turn “Days in AR” into a competition. Celebrate fast payers. Call out the wins. Bonus points for tying it to compensation.

8. Stay overbilled
Mobilize smart. Front-load when allowed. Stay cash positive and ahead.

9. If you're heavy with one owner - stay close
Set up recurring check-ins. Especially on complex jobs with change orders or disputes. Silence kills relationships. Proactive communication keeps cash flowing.

Bottom line:

If you’re not collecting, you’re not managing. You’re subsidizing. Construction is a low margin business. The company’s financial health depends on you collecting.

You built it. You deserve to get paid on time!

Thank you for reading this week. See you next week!

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About the Author

Tristan Wilson is the CEO and Founder of Edgevanta. We make software that helps contractors win more work at the right price. He is a 4th Generation Contractor, construction enthusiast, ultra runner, and bidding nerd. He worked his way up the ladder at Allan Myers in the Mid-Atlantic and his family’s former business Barriere Construction before starting Edgevanta in Nashville, where the company is based. Reach out to him at [email protected]