LinkedIn Content – Episode 00161
Residential contractors do not usually fail in commercial work because they cannot build.
They fail because they bid commercial jobs with residential systems.
A commercial bid is not just a bigger proposal. It can come with retainage, AIA pay apps, longer payment cycles, bonding, higher insurance limits, specs, RFIs, submittals, lien waivers, strict change order rules, and contract terms that punish sloppy paperwork.
The dangerous part is the job can look profitable on paper while it drains your cash in real life.
You may be funding payroll, materials, subs, and overhead while waiting on approvals, pay apps, and retainage release.
That is how contractors grow broke.
Before you chase a bigger commercial bid, you need real job costing, WIP reporting, cash flow forecasting, contract review, and a bid/no-bid process.
If your construction business is doing over $500K and you are moving into commercial work, build the controls before you win the bid.
Book a consultation: https://accountingsolutionsllp.com/appointment/
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Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.