How construction finance teams can improve working capital management

In construction, managing working capital isn’t just about keeping the lights on. It’s about keeping jobs moving. With unpredictable payment cycles, large upfront costs, and razor-thin margins, cash can disappear fast.  

Let's explore how FP&A Plus helps construction finance teams stay ahead and stay in control.

What is working capital management in construction?  

Working capital management for construction finance teams means balancing cash inflows and outflows across multiple jobs, vendors, and timelines. It involves carefully managing accounts receivable, accounts payable, and project-related expenses to ensure there's enough liquidity to fund operations, pay subcontractors, and cover materials without overextending. In construction, delays and retainage make this especially complex, requiring proactive planning and real-time visibility.

Why is working capital management important for construction finance teams?  

Without an FP&A solution like FP&A Plus, working capital management in construction can be a constant juggling act. Finance teams rely on outdated reports, disconnected spreadsheets, and gut feel to predict when cash will come in. Or worse – when it might run short. The timing of receivables, payables, and job costs is hard to sync, and that makes it difficult to plan with confidence. One delay or unexpected payment could ripple across multiple projects and put entire timelines at risk.

But with FP&A Plus, construction finance teams gain real-time visibility into cash flow drivers across the business with far more granularity than traditional tools allow for.  

Now, construction finance teams can forecast inflows and outflows not just by job, but by vendor, phase, cost code, or payment term. That level of detail lets you model different scenarios, proactively adjust plans, and prioritize payments based on what will have the greatest impact. Instead of reacting to cash flow crunches, you’re staying ahead of them while protecting liquidity, keeping crews and vendors paid, and ensuring every project stays on track. 

How does FP&A Plus support working capital management in construction?  

Cash flow forecasting across jobs 

ERPs typically offer static cash reports or limited visibility into individual projects. FP&A Plus lets you forecast cash inflows and outflows at a granular level: by project, vendor, contract, or cost type. Now you can see how a delayed receivable or change order on one job affects your ability to fund another and helps to manage liquidity across your full project portfolio, not just the balance sheet.

Integrated AR/AP planning with operational context 

Unlike ERP modules that handle AR and AP in isolation, FP&A Plus connects billing schedules, retainage, payment terms, and vendor timing directly to your financial models. You can see how a delay in payment from one client impacts your ability to pay subs, order materials, or hit key construction milestones. This connected insight helps construction finance teams prioritize payments strategically and negotiate more effectively with vendors and clients alike.

Scenario modeling for real-world what-ifs 

Construction rarely goes according to plan. FP&A Plus lets you test different cash flow scenarios in real time, like a client delaying payment by 60 days, a major subcontractor change, or rising material costs due to tariff uncertainty. FP&A Plus shows you how these changes impact your working capital position, project schedules, and profitability across your job portfolio. This level of proactive insight, powered by connected data across finance and operations, is something ERPs and point tools can’t deliver without manual work and disconnected models. 

Why you should start tracking working capital management with FP&A Plus today  

Now you can take control of working capital with FP&A Plus. In construction, working capital can make or break a project. And traditional tools simply aren’t built to manage the complexity.  

FP&A Plus gives construction finance teams the insight, flexibility, and control they need to plan cash flow with confidence. From granular AR/AP forecasting to scenario modeling and project-level visibility, it goes far beyond what ERPs or point solutions can offer.

With FP&A Plus, you’re not just tracking cash. You’re actively managing it across every job, vendor, and timeline.