Running a construction company means balancing far more than projects and payroll. Between fluctuating material costs, seasonal cash flow, and complex compliance requirements, financial oversight can make or break a project. That’s where a fractional CFO comes in.
A fractional CFO gives construction companies access to senior-level financial expertise without the full-time cost. They can build systems, strengthen reporting, and help owners make smarter decisions about growth and risk. But how do you ensure you’re hiring the right one—and setting them up to deliver maximum value?
Here are the best practices to hire a fractional CFO for construction companies.
1. Define Your Financial Goals and Pain Points
Before you bring on a fractional CFO, get clear on what you want them to solve.
Action Steps:
- Identify whether your priority is cash flow stability, project-level profitability, or long-term growth planning.
- List the areas that cause the most headaches—delayed receivables, unclear job costing, or difficulty forecasting.
- Set both short-term goals (e.g., implementing a 13-week cash flow forecast) and long-term goals (e.g., preparing for expansion into new markets).
2. Choose a CFO with Construction Experiene
Not all financial executives understand the nuances of the building industry. The right fractional CFO for construction companies should know the difference between progress billing and change order pricing—and how those details impact cash flow.
Action Steps:
- Look for candidates with direct construction accounting or project finance experience.
- Ask about their background with job costing, bonding capacity, and subcontractor risk management.
- Check references from other contractors to see how they’ve solved industry-specific challenges.
3. Set Clear Expectations and Scope
Fractional CFOs typically work 10–20 hours per month. To get the most out of their time, clarity is critical.
Action Steps:
- Define which deliverables are most valuable (e.g., monthly project profitability reports, quarterly forecasting, or bonding relationship support).
- Agree on the cadence of updates—weekly calls, monthly reports, or quarterly strategy sessions.
- Establish KPIs like improved gross margins per project, reduced days sales outstanding, or predictable cash flow.
4. Provide Access to Information and Systems
A fractional CFO can only be effective if they have the data they need. Construction projects move fast—financial data needs to move just as quickly.
Action Steps:
- Grant access to accounting software, project management tools, and contracts.
- Share historical financials to provide context on cost trends and seasonality.
- Introduce them to project managers and estimators so financial insights align with operations.
5. Build Communication into Your Workflow
Construction CFOs aren’t just “number crunchers.” Their role is to bridge financial insight with project execution.
Action Steps:
- Schedule regular check-ins tied to project milestones or billing cycles.
- Encourage two-way dialogue—invite their feedback on risks you may not see.
- Treat them as part of the leadership team, not just a consultant.
6. Monitor Progress and Adjust as Needed
Construction is unpredictable—material costs can spike, weather delays happen, and client payments can be late. Your fractional CFO’s plan should adapt as conditions change.
Action Steps:
- Review financial dashboards monthly to spot red flags early.
- Adjust strategies for cost allocation, supplier payment terms, or cash reserves as needed.
- Celebrate improvements—like improved cash predictability or higher profitability per job.
7. Leverage Their Strategic Insight
A fractional CFO should be more than a financial safety net—they should be a growth partner.
Action Steps:
- Involve them in bidding strategy, equipment financing decisions, and market expansion plans.
- Use their expertise to evaluate risk on large projects before signing contracts.
- Tap into their industry perspective to ensure the company is scaling sustainably.
People Also Ask: Hiring a Fractional CFO for Construction Companies
How much does it cost to hire a fractional CFO for a construction company?
On average, a fractional CFO costs $2,000–$5,000 per month. This is far less than the $180,000+ salary of a full-time CFO, making it a cost-effective option for contractors who need financial expertise without the overhead.
When should a construction company consider hiring a fractional CFO?
A construction company should hire a fractional CFO when revenue is between $5–20 million, when multiple projects are active at once, or when cash flow becomes unpredictable. At this stage, bookkeeping and CPA support are no longer enough to manage financial complexity.
What does a fractional CFO actually do in construction?
A fractional CFO focuses on job costing, cash flow forecasting, profitability analysis, bonding capacity, and project-level financial reporting. They also help owners make strategic decisions about growth, acquisitions, and managing financial risks unique to construction.
Is a fractional CFO the same as a bookkeeper or CPA?
No. A bookkeeper manages daily transactions, and a CPA handles compliance and taxes. A fractional CFO provides strategic financial leadership—bridging the gap between accounting tasks and long-term financial strategy for construction companies.
Can a fractional CFO work remotely with contractors?
Yes. Many fractional CFOs use cloud-based accounting and construction management tools to work virtually. Some also offer hybrid support, combining virtual financial reviews with in-person strategy sessions or site visits when needed.
Conclusion
Hiring a fractional CFO can be a turning point for construction companies that have outgrown basic bookkeeping but aren’t ready for a full-time CFO. By following the best practices to hire a fractional CFO for construction companies, you’ll unlock financial visibility that helps every project stay profitable.
The result? Fewer financial surprises, stronger cash flow, and the confidence to grow without risking your foundation.
Ready to strengthen your construction company’s financial foundation?
A fractional CFO can bring the expertise you need to stabilize cash flow, improve project profitability, and prepare for growth—without the six-figure cost of a full-time hire. If you’re managing multiple projects and want more financial clarity, now is the time to take the next step.
👉 Contact us today to learn more about fractional CFO services for construction companies
