What a fractional CFO does for a construction company
A contractor can be busy, profitable on paper, and still short of cash. Payroll and materials go out weekly, while retainage, pay applications, and change orders pay months later. A bookkeeper records what happened. A fractional CFO tells you which jobs are making money, which are about to lose it, and how much you can bid next quarter without choking cash.
The work usually covers these areas:
- Job costing. Costs coded to the job, phase, and cost type, so estimated gross profit is trusted before the job closes and not discovered after.
- Work in progress schedule. Over and under billings, percent complete, and projected margin by job, the report your surety, bank, and CPA all ask for.
- Cash flow across projects. A 13 week forecast that includes retainage, billing cycles, and the timing of subcontractor payments.
- Bonding and financing. Preparing the package for a surety or a line of credit, and explaining your backlog and margin fade in plain terms.
- Bid and overhead strategy. Overhead allocation, markup targets, and a view of which kinds of work earn the margin you need.
- Accounting quality. Revenue recognition that matches your contracts, clean accounts payable with lien waivers, and a monthly close that finishes in days.
The CFO does not replace your project managers or your tax preparer. They give you numbers you can bid and borrow against.
Signs your construction company needs a fractional CFO
- Jobs that looked profitable at bid come in thin, and you only find out at closeout.
- Your surety or bank asked for a WIP schedule or reviewed statements and your books cannot produce one.
- Cash is tight even though the backlog is full.
- You are doing $3M to $60M a year and financials arrive six weeks after month end.
- You want to raise your bonding capacity, take on larger projects, or buy a competitor.
- You are preparing for an ownership transition and need clean, defensible earnings.
If you mostly need clean monthly books and a faster close, start with a fractional controller. Smaller firms can begin with the broader fractional CFO for small business page.
How much does a fractional CFO for construction cost
Experienced fractional CFOs on Side.work charge $175 to $300 an hour. Monthly cost equals hourly rate times hours a week times 4.33, rounded to the nearest dollar. The $225 column is a planning example in the middle of the band.
| Hours a week | At $175 an hour | At $225 an hour | At $300 an hour |
|---|---|---|---|
| 5 | $3,789 | $4,871 | $6,495 |
| 8 | $6,062 | $7,794 | $10,392 |
| 10 | $7,578 | $9,743 | $12,990 |
| 12 | $9,093 | $11,691 | $15,588 |
The platform fee of 12, 8, or 5 percent and the plan subscription are added on top. Invoices follow approved hours. Many contractors use 10 to 12 hours a week while setting up job costing or preparing a bonding package, then settle at 5 to 6. The full breakdown is in the fractional CFO cost guide.
Fractional CFO vs controller vs a construction accounting firm
| Option | Typical cost | Best for | Watch out for |
|---|---|---|---|
| Fractional CFO | $3,800 to $15,600 a month at 5 to 12 hours a week | WIP analysis, cash forecast, bonding, bank and surety relationships | Needs a controller or bookkeeper to keep job cost entries current |
| Fractional controller | Lower hourly rate, 4 to 10 hours a week | Job cost setup, monthly close, pay applications, reviewed statements | Less strategy, no financing work |
| Construction CPA firm | Fixed fee for tax and review or audit | Tax filing, reviewed or audited statements for the surety | Reporting arrives after the fact and advice is limited |
| Full time CFO | Salary, bonus, and benefits, typically a large six figure package | Contractors above roughly $100M with multiple divisions | Cost and hiring time before the need is proven |
A common setup is a CPA firm for tax and statements, a controller for the close, and a fractional CFO for decisions.
A typical week, Fractional CFO
10 hours a week
- Hourly rate
- $175 to $300
- Monthly cost
- $7,600 to $13,000
What the first 90 days look like
Month one finds out where margin leaks
The CFO reviews the job cost reports, your chart of accounts, open pay applications, retainage, and subcontractor commitments. You get a first WIP view and the three or four jobs or cost codes that need attention now.
Month two builds the forecast
The CFO builds a 13 week cash forecast and a backlog schedule, and drafts the bank or surety package while there is time to fix gaps.
Month three sets the rhythm
You get a monthly package with WIP, job margin changes, cash, and overhead recovery, plus a short list of actions. Your estimators and project managers know which numbers they own.
How hiring a fractional CFO works on Side.work
Choose the fractional CFO role, enter weekly hours and budget, and describe your trades, revenue range, and the decision you need help with. Side.work ranks verified profiles by fit and shows live availability. You can open conversations with several candidates, compare how each would approach your first 90 days, and sign a contract with a weekly hours cap. One invoice covers all hours.
Questions to ask a fractional CFO before you hire
- Which contractors have you worked with, and what trades and revenue ranges did they cover?
- How do you set up job costing and test that percent complete is reliable?
- Walk me through a WIP schedule you built for a surety. What did they push back on?
- How would you forecast cash when retainage and change orders are delayed?
- What would you look at in the first two weeks, and what access do you need?
- How many hours do you expect each month, and how do you report them?