Construction Contractors’ Spring Checklist

Spring Is Go-Time for Construction—Are You Ready?

As construction season heats up across the country, contractors must make strategic financial moves to seize opportunities, control costs, and ensure efficient project execution. Waiting too long to secure financing or delaying financial decisions until bids are won can lead to material price hikes, payroll stress, and slow project starts. Taking a proactive approach to funding ensures contractors can navigate the challenges of the season without unnecessary disruptions.

Here is how to stay ahead of the competition and maximize this year’s spring boom with a strong funding strategy.

Secure Working Capital Early to Hedge Against Rising Costs

Material costs fluctuate due to market conditions, supply chain disruptions, and government policies. Tariff uncertainty and ongoing global economic shifts could lead to price adjustments on key construction materials such as steel, lumber, and electrical components. Even if changes are still uncertain, securing funding in advance enables contractors to buy materials before prices increase.

Why Early Financing Matters for Contractors Nationwide:

• Supply chain slowdowns caused by port congestion, tariffs, or logistics delays can create unexpected price hikes.
• Buying materials in bulk ahead of time allows contractors to control costs and avoid last-minute price spikes during peak season.
• Cash flow shortages may force contractors to delay procurement, leading to higher costs and project inefficiencies.

Regional Considerations:

• High-cost labor markets (e.g., Northeast, California): Contractors need a financial cushion to manage material and labor expenses simultaneously.
• Heavy import-dependent states (e.g., Texas, Florida): Port delays could make early material purchases a smart move to prevent disruptions.

Recommended Funding Strategy:

Cash flow financing or a contractor line of credit allows contractors to buy in bulk before costs spike. These financing solutions provide the flexibility to acquire essential materials at the right time rather than waiting until project funds are released.

Expand Your Workforce Before Peak Hiring Season

As demand for construction projects rises, so does competition for skilled labor. By the time contracts are awarded, many of the best workers may already be booked. Hiring in advance ensures contractors are fully staffed and ready to mobilize as soon as a bid is secured.

Why Hiring Early Makes Sense Nationwide:

• A surge in project demand during the peak season leads to a competitive hiring market, driving wages higher.
• Contractors who onboard early avoid last-minute labor shortages and project delays.
• Many construction companies underestimate the timeline for recruiting, onboarding, and training new employees, leading to setbacks.

Regional Considerations:

• High-union labor markets (e.g., New York, New Jersey, Midwest metro areas): Increased labor costs mean contractors need a payroll funding cushion.
• Growth-heavy markets (e.g., Texas, Southeast): Expanding early prevents bidding wars for skilled labor and ensures crews are available when needed.

Recommended Funding Strategy:

A flexible line of credit provides access to the capital needed to onboard workers without waiting for project payments. Payroll funding solutions help contractors meet labor expenses while maintaining steady cash flow.

Be Ready to Execute the Moment You Win a Bid

Many contractors delay securing financing until after they win a bid. However, once a contract is secured, the clock starts immediately, and waiting for traditional financing can lead to procurement and mobilization delays. Contractors who plan ahead and have financing in place can begin work immediately without financial bottlenecks.

Why Immediate Funding Matters Nationwide:

• Contractors often face immediate pressure to mobilize once a bid is won.
• Lack of upfront cash flow can push back schedules, damaging client trust and contractual obligations.
• Equipment rentals, material procurement, and labor deployment require immediate capital availability.

Regional Considerations:

• Disaster-rebuild zones (e.g., Florida, Gulf Coast): Tight funding windows require quick access to capital to respond to urgent construction needs.
• Seasonal construction markets (e.g., Midwest, Northeast): Shortened working seasons due to weather constraints make timely financing critical.

Recommended Funding Strategy:

Cash flow financing  or a construction line of credit ensures immediate access to capital. Contractors can start work on day one without scrambling for cash, reducing delays and strengthening business credibility.

Secure Liquidity for Staggered Payment Cycles

Mid-sized contractors often operate in a financial gray area where they are caught between making payments to subcontractors and waiting on receivables from general contractors (GCs). Many construction projects follow staggered payment cycles of 30 to 90 days. Without sufficient liquidity, cash flow gaps can stall progress, impact payroll, and cause delays in material procurement.

Why Financial Flexibility Is Essential Nationwide:

• Payment gaps create cash flow strain, leading to delays in paying crews and purchasing materials.
• Large contracts typically involve longer invoice cycles, making financial flexibility key to keeping projects on track.
• Contractors relying solely on receivables may find themselves in a difficult position when payments are delayed.

Regional Considerations:

• Permit-heavy regions (e.g., California, Northeast): Lengthy permitting processes mean contractors need a strong financial buffer before work can officially begin.
• Fast-growing states (e.g., Southeast, Texas): Larger projects mean bigger payouts, but they often come with longer wait times for payments.

Recommended Funding Strategy:

Having a working capital solution in place ensures projects continue moving forward even if payments are delayed. Construction businesses should consider financing solutions that provide liquidity to bridge the gap between expenses and receivables.

Additional Considerations for Financial Stability

Beyond immediate funding needs, contractors should consider the long-term impact of financial planning. A strong financial foundation not only helps manage the uncertainties of a busy season but also positions businesses for growth opportunities.

Strategies for Strengthening Financial Readiness:

1. Build Relationships with Financial Partners: Establishing a relationship with a trusted financial provider ensures quicker access to funding when needed.
2. Monitor Economic Trends: Stay informed about material cost fluctuations, labor market shifts, and regulatory changes that could impact budgets.
3. Leverage Technology for Financial Planning: Use budgeting tools and cash flow forecasting software to anticipate funding needs and make informed financial decisions.
4. Diversify Funding Sources: A mix of working capital loans, lines of credit, and project-based financing ensures flexibility in managing different financial scenarios.

Final Takeaway: Plan Ahead to Win More This Season

The most successful contractors are those who take a proactive approach to financial management. Securing funding before it is needed allows construction businesses to manage material costs, labor expansion, bid execution, and project liquidity with confidence. Waiting until financial challenges arise can lead to costly delays and lost opportunities.

By planning ahead and securing the right financial resources, contractors can take full advantage of the spring construction season, ensuring smooth operations and sustained growth.

For expert financial guidance tailored to the construction industry, reach out to our advisors today and explore financing solutions designed to keep your projects moving forward. If you’re ready for financing, you can fill out our digital application today.