# The Construction Cash Flow Cycle
Construction has a brutal cash timing: **you pay first and get paid last.**
## The cycle
1. **You spend** — labor weekly, materials on delivery, mobilization up front.
2. **You bill** — usually monthly, for work already done.
3. **You collect** — often **30–60+ days** after billing.
4. **Retainage** — a slice (5–10%) is held back until the very end.
The gap between spending and collecting is where the **cash crunch** lives — and retainage means part of your profit is locked up until closeout.
**Takeaway:** You pay first and get paid last — plan for the gap between spending and collecting.
> *Educational content — not legal, financial, or accounting advice. Run your numbers with your CPA.*
