UK Construction Finance

The 5 Numbers Every £1M–£10M Construction Business Must See Weekly

Stop cash stress. Stop hidden profit loss. Install control. If you run a UK construction business and still feel stretched — this is for you.

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Sound familiar?

Revenue growingJobs on site. Accounts look good.

Bank balance tightEnd of month always feels close.

VAT quarter loomingWhere's the cash going to come from?

Retentions stacking upYour money, funding someone else's job.

Tax bill unclearNo real reserve. Year-end panic.

The real problem

You're Probably Profitable. You're Probably Busy. And You Probably Still Feel Stretched.

That is not a turnover problem. It is a visibility problem. Most accountants focus on compliance — year-end accounts, VAT returns, corporation tax. That keeps you legal. It does not give you control.

Turnover£3M

£280KReported profit

£310KTied in retentions

£0Tax reserve

74Debtor days

On paper

Success.

In reality

Constant pressure.

The fix

See the right numbers weekly.

The 5 Numbers That Install Control

Cash

The 13-Week Cash Forecast

A rolling weekly projection of real cash in and real cash out for the next 13 weeks. Not turnover. Not profit. Cash. Construction businesses rarely fail because of lack of work — they fail because of timing. Growth eats cash before it creates profit.

Without it

Surprise VAT bills
Payroll panic
Overdraft dependence
Stress every month end

What good looks like

Updated weekly
Receipts by job & date
VAT, CIS, payroll included
Risk visible 8–12 weeks ahead

Immediate action

List confirmed receipts by job for the next 13 weeks. Add fixed outgoings, VAT and payroll dates. You will instantly see where risk sits.

Margin

Live Gross Margin Per Job

A weekly comparison between estimated margin and actual margin on every live project. One bad job can wipe out three good ones. Quoted at 18% — real margin drops to 6% after variations, overruns and unrecovered costs. If you only review at year end, the damage is done.

Without it

Variations slip through
Labour overruns unnoticed
PMs assume "it's fine"
Net margin erodes quietly

What good looks like

Weekly margin review meeting
Estimate vs actual visible
Red flags raised early
PM accountability

Immediate action

Schedule a 30-minute weekly margin review per live project. No review. No control.

Working Capital

Retentions Outstanding

A separate tracker showing total retained cash owed and expected release dates. On £5M turnover with 3% average retention, £150K is locked. That is your cash funding someone else's job — and it makes growth feel stressful.

Without it

Overdraft reliance
Supplier strain
False sense of profit
Growth feels stressful

What good looks like

Listed by client
Release dates logged
Active chasing process
Impact on pricing considered

Immediate action

Create a retention schedule today. List client, amount, and expected release month. You cannot manage what you do not isolate.

Collections

Debtor Days by Job

Average collection time broken down by project or client — not just overall aged debt. 68 days vs 45 days is serious cash drag. On £4M turnover, that gap can mean over £250K difference in working capital.

Without it

Cash gaps widen
Funding costs increase
Risk of bad debt rises
No clear accountability

What good looks like

Tracked weekly
Clear escalation process
PM involvement in collection
Stage payments structured

Immediate action

Calculate average days outstanding for your top five clients. That number tells you where to focus first.

Tax

Tax Provision Balance

Cash set aside monthly for corporation tax and VAT. Not estimated once a year. Reserved consistently. Tax shock destroys stability — an £8M developer projecting £180K corporation tax with only £40K reserved is a serious problem waiting to happen.

Without it

Emergency borrowing
Directors loan drift
Dividends without cash check
Year-end stress

What good looks like

Monthly % of profit transferred
Separate tax reserve account
Rolling tax forecast
Dividend planning aligned

Immediate action

Open a separate tax reserve account. Transfer monthly. Non-negotiable.

Where do you stand?

Quick Self-Assessment

Click each statement that is already in place in your business. Score yourself honestly.

13-week cash forecast updated weekly

Live job margin reviewed weekly

Retentions tracked in a separate schedule

Debtor days monitored per client weekly

Tax provision funded into a separate account monthly

Your score0/25

0–10 Reactive11–18 Improving19–25 Controlled

Tick each item above to see your result.

Next step

Install Control Properly

We help UK construction firms turning over £750K–£15M stop cash stress and hidden profit loss. We install simple financial control systems so you always know where you stand.