Strategic Financial Resources & Practice Areas

Senior financial leadership, frameworks, and operational accounting guides tailored for middle-market commercial construction and manufacturing enterprises.

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Why Is Construction Revenue a Lie When Slow-Paying Clients Delay Cash Flow?

In the commercial construction industry, top-line revenue growth often masks a dangerous liquidity crisis. Subcontractors wait an average of 56 days for payment, with 82% facing payment waits exceeding 30 days. When general contractors and project owners extend payment terms, growing firms must front labor and material costs out-of-pocket, creating a severe cash conversion gap. Implementing a rolling 13-week cash flow forecast, disciplined Accounts Receivable (AR) collection cadences, and strategic vendor priorities enables contractors to preserve working capital, expand bonding capacity, and protect bank credit lines.

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California SB 61: A Major Win for Construction

Governor Gavin Newsom signed California Senate Bill 61 (SB 61) into law, placing a statewide cap on retention payments in private construction contracts. This new legislation aligns private-sector retainage rules with the 5% standard already in place for public works—providing a more equitable, cash flow–friendly environment for contractors, subcontractors, and small businesses across the state.

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Protect Your Firm's Working Capital & Cash Flow

Waiting 60+ days for progress payments? Cline Consulting Solutions builds custom 13-week rolling cash forecasts and AR collection frameworks for middle-market construction and manufacturing firms.

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