Specialist subcontractors · Paid last in the chain
Fractional CFO for specialist subcontractors
Specialist subcontractors carry cash for the builders above them: labour and materials go out every week, and the money comes back on the head contractor’s terms, less retention. We help you plan for that gap and choose the work that pays.
What subcontractors are deciding
Rules and rates are stated in general terms. Your legal adviser or tax adviser can confirm how they apply to your business.
How much one head contractor’s terms cost in cash
The weeks between your claim and their payment are weeks your business funds the job. We put a dollar figure on each contract’s terms before you sign.
Retentions and when they come back
Retention sits with the head contractor until practical completion and the end of the defects period. We track every amount and the date it falls due, so none is forgotten.
Whether to take the next job from a builder who pays late
A slow payer’s job can show a good margin and still drain the bank. We weigh the margin against the cash it ties up and the risk of waiting.
How concentrated the business is in one or two head contractors
When most of the work comes from one builder, their slow month becomes yours. We show how much rests on each head contractor and what spreading the work would take.
Illustrative example · Concreting and formwork subcontractor · Queensland
The cash one subcontract ties up
A concreting and formwork subcontractor wins a $1,200,000 subcontract on a six month commercial job. It claims at the end of each month for the work done, 10, 15, 25, 25, 15 and 10 per cent of the value, and the head contractor holds back 5 per cent of every claim as retention, $60,000 in all: half until practical completion, half until the end of a 12 month defects period. Each claim is paid 25 business days after it is given, the longest term a Queensland subcontract can set, so at every month end the previous month’s claim is still unpaid.
At the end of month four, the busiest point, the subcontractor is owed $570,000 in unpaid claims and $45,000 in retention: $615,000, just over half the subcontract, much of it for labour and concrete already paid for. Half the retention comes back with the final claim, and the last $30,000 about a year after practical completion, some 18 months after the first claim.
$615,000
Owed at the busiest point, the end of month four
51%
Of the subcontract value tied up at that point
$60,000
Retention held by practical completion
18 months
From the first claim to the last retention payment
The same job on the BIF Act’s default of 10 business days, which applies when a subcontract is silent, ties up at most $330,000. The payment terms, more than the size of the job, decide how much cash a subcontract takes.
Illustrative, built from typical claim, retention and defects terms for a subcontract of this size. Contract terms are described in general terms only; your legal adviser can confirm what your own subcontract allows. Not a client engagement.
Sources: Building Industry Fairness (Security of Payment) Act 2017, section 73 and its notes on the Queensland Building and Construction Commission Act 1991, section 67U. Checked 20 October 2026.
How an engagement runs
Every engagement starts with discovery and a diagnostic in the first two weeks. We get under your numbers, from your subcontracts and claim history to retentions held, payroll and aged debtors, and surface the issues and opportunities that matter most to a subcontracting business.
By the end of the first month there is clean reporting, a cash flow forecast built on each head contractor’s terms and an agreed rhythm of reviews. The first decisions land in the second month, in pricing, cash or cost, and from the third month we are part of how the business runs, alongside your accountant and bookkeeper. The fractional CFO service page sets out the full scope.
Tools to start with
Free tools for the cash a subcontract ties up, each with its result on screen straight away.
Common questions
Do you replace our accountant?
No. Your accountant keeps the tax returns, BAS and year end accounts, and your bookkeeper keeps the books. We add the forward looking work: cash forecasts built on each head contractor’s terms, retention tracking, job margins and the numbers behind which work to take. We share what we find with your accountant, so everyone works from the same figures.
What does it cost?
The fractional CFO partnership starts from $3,750 a month, billed month to month with no long term lock in. When you need a figure for the business, before a sale or a handover, an indicative valuation starts from $4,500 and a comprehensive valuation from $13,500. Each of these is a starting price.
How is the fee sized?
Engagements usually stay at the starting price. Some need closer oversight or a deeper assessment, and the scope and fee rise to match. Find your fit confirms your price based on the characteristics of your business, and the pricing page explains how everything is sized.
Do you work with subcontractors outside Brisbane?
Yes. We work with subcontractors across Brisbane, the Gold Coast and the Sunshine Coast, and further afield across Australia. Most of the monthly work happens over video calls and shared reports, with visits as each engagement needs, so distance changes little. The locations we serve page has the detail.
What do you need from us to start?
Read only access to your accounting software, the last two years of financial statements, your current subcontracts and claim history, a list of retentions held, aged debtors and your payroll summary. A first meeting with you covers how work comes in and how it is paid. Nothing needs to change in your systems before we start.
Talk it through with us
A 45 minute discovery call is complimentary. Bring your subcontract payment terms and your aged debtors.