An active project-month earns the fee for progress performed that month, not a whole new contract every month. This fictional owner-managed US renovation contractor divides a fixed project-month pool across five formats. The January 2027–December 2029 forecast separates earned progress from later cash receipts.
Test the workload with actual schedules and progress evidence. Booked contract value and an opening reserve cannot substitute for collected cash.
What is an active project-month?
The mature workload is 8, split across kitchens, bathrooms, structural work, additions and commercial renovation. A continuing job can occupy several project-months, with only the corresponding progress earned. The table is not a list of completed houses or whole contracts.
This workload is an assumption rather than proof that the sites, supervisor and purchased trades can run concurrently. The saved case holds project scale fixed; later fee growth does not imply additional crews or site capacity.
| Renovation type | Active project-months | Fee/project-month | Earned progress |
|---|---|---|---|
| Kitchens | 2 | $18,000.00 | $36,000.00 |
| Bathrooms | 2 | $12,000.00 | $24,000.00 |
| Structural work | 1.6 | $25,000.00 | $40,000.00 |
| Home additions | 1.6 | $35,000.00 | $56,000.00 |
| Commercial | 0.8 | $32,000.00 | $25,600.00 |
What must the progress fee pay for?
Direct costs are 64.5% of revenue, including goods and purchased trade packages. Only goods enter stock. Supervisor, carpenters, owner-manager and office coverage are paid separately; their salaries are not all hidden inside the trade packages.
April revenue is $181,600.00 and EBITDA is $16,815.11. That measure is before depreciation, interest and tax. The owner-manager allowance of $9,166.67 remains included before the employer allowance.
Why is earned progress larger than collections?
The cash case assumes 17 collection days and a 10-day blended purchase payment lag. In 2027 it earns $1,997,600.02 and collects $1,894,693.35, leaving $102,906.67 in receivables.
The blended payment lag does not mean every supplier offers credit. Customer deposits, retentions, unbilled work and advances are outside this forecast. Real contracts containing them require a more detailed cash schedule before its reserve conclusion can be reused.
What reserve remains after launch spending?
Proposed equity of $800,000.00 less startup uses of $204,000.00 leaves $596,000.00. Opening reserve is not another expense. Minimum forecast cash is $523,965.94.
Operating-year 2027 net income is $79,491.12, while operating cash flow is $51,118.45. Working-capital timing and noncash depreciation contribute to their difference. Equity is uncommitted and refundable premises deposits remain excluded.
What evidence supports the progress invoice?
Collect scoped contracts, dated site schedules, trade quotes, material orders and a progress-acceptance process. Check actual supervisor and carpenter commitments before accepting the proposed active-project pool.
Reconcile earned progress, invoices, receivables and supplier obligations by project. Model advances, retentions and unbilled work explicitly. A signed order is demand evidence, but its whole value is neither this month’s earned progress nor cash available to pay trades.
Make the next decision with your own evidence
Build a project-by-project progress and payment schedule from real contracts before committing the proposed site workload.
Explore published business plan examples ↗Timberline Works is a fictional prelaunch scenario prepared with AI assistance. Inputs are illustrative; forecast results come from the matching saved financial model. Funding is proposed. The diagrams explain the case and do not depict actual premises, established demand or promised earnings. Replace the assumptions with evidence before committing.
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