Christmas Cashflow Plan for Builders

The construction industry effectively stops for three to four weeks over Christmas – but wages, super, rent, equipment finance and the January BAS do not. Most building business failures we see trace back to cash, not profit, and the December-January gap is where cash goes to die. Here is the plan.

1. Get claims in before the cut-off

Builders and head contractors have payment cut-offs in early-to-mid December. A progress claim that misses the last payment run does not get paid until late January. Map every project’s claim deadline now and work backwards.

2. Chase retentions and overdue accounts in November

November is your best collection month of the quarter – decision-makers are still at their desks and nobody wants disputes hanging over the break. Reconcile retentions owed to you and chase anything outside terms.

3. Know your shutdown number

Add up everything that must be paid between mid-December and the end of January: wages and annual leave, super (the December quarter is due 28 January), PAYG withholding, vehicle and equipment finance, insurances, rent and the December BAS if you lodge monthly. That total is your shutdown number – and it should be sitting in the bank before you lock the site gate.

4. Mind the annual leave bulge

Paying the whole crew’s leave in one hit is a genuine spike. If cash is tight, talk to us early about smoothing options – not in the week before shutdown.

5. Do not raid the QBCC buffer

If you are a category 1-7 licensee you have just lodged (or are about to lodge) annual reporting showing your NTA and current ratio. Draining working capital in January can put you in breach by February. Your QBCC minimums are the floor, not a target.