Make the cost calendar explicit
Estimate the cash cost of delivering the work, including the wages, subcontractors, materials and overheads you choose to include. Identify deposits or one-off purchases separately if a constant weekly figure would hide them.
The contract planner pays the weekly cost on the start date and every seven days after that. This is a modelling convention. If your payroll or supplier dates differ, use those actual dates in a more detailed forecast. The tool does not calculate payroll entitlements or tax liabilities.
Separate a claim milestone from collection
Record each progress claim’s date and gross amount. Then apply the expected collection lag. A submitted claim is not money in the bank, and a milestone may require supporting evidence or acceptance before payment.
The model uses whole calendar days for the lag. It does not interpret business-day terms or legal payment deadlines. Read the agreement's amounts, payment dates and milestone conditions together, then record the collection dates you expect to use in the forecast.
Worked example: eight weeks of delivery
Assume A$20,000 opening cash, a A$5,000 reserve and A$10,000 weekly delivery costs for eight weeks from 1 September 2026. Two A$50,000 claims are submitted on 22 September and 20 October. Each is collected 14 calendar days later with 10% retention; the combined retention is released on 30 November.
| Date | Cash event | Closing cash after that date |
|---|---|---|
| 1 September | A$10,000 delivery cost | A$10,000 |
| 8 September | A$10,000 delivery cost | A$0 |
| 15 September | A$10,000 delivery cost | −A$10,000 |
| 22 September | A$10,000 cost; A$50,000 claim submitted | −A$20,000 |
| 29 September | A$10,000 delivery cost | −A$30,000 |
| 6 October | A$45,000 collected; A$10,000 delivery cost | A$5,000 |
| 13 October | A$10,000 delivery cost | −A$5,000 |
| 20 October | A$10,000 cost; second A$50,000 claim submitted | −A$15,000 |
| 3 November | A$45,000 collected | A$30,000 |
| 30 November | A$10,000 retention collected | A$40,000 |
Swipe or scroll the table sideways to see every column.
The first reserve breach is 8 September. The lowest balance is −A$30,000 on 29 September, giving a A$35,000 gap to the reserve. Total collections are A$100,000 and delivery costs A$80,000, but the A$20,000 surplus does not remove the earlier cash requirement. Same-date events are grouped; confirm actual clearance timing if a payment depends on a receipt that day.
Keep retention out of ordinary claim receipts
The planner withholds the entered percentage from each claim and schedules the combined retained amount for one later release. This prevents the same cash appearing in both a progress receipt and the release.
The simplified release date must be on or after the latest scheduled claim receipt. Agreements with retention caps, multiple release stages or changing percentages need a more detailed schedule. Cash after the forecast end date remains deferred rather than repairing an earlier shortfall.
Compare the delivery plan with available cash
Review the first buffer breach and the largest gap, then identify which costs fall before the first collection. Test later collections separately from higher weekly costs; combining every change at once makes the result harder to explain.
A project forecast also needs a business-level check. Other jobs may use the same opening cash, while existing debt and overhead payments continue. If considering funding, add its quoted repayments and fees and check when the balance can realistically reduce.
Stress the first collection before mobilisation
If only the first A$45,000 collection moves 14 days later, from 6 October to 20 October, costs continue. Cash reaches −A$50,000 on 13 October, so the peak gap to the A$5,000 reserve becomes A$55,000. The final balance remains A$40,000 when all entered receipts arrive.
This isolates one delay. The extra A$20,000 peak gap shows why an unchanged contract value is not enough to judge the cash needed to deliver it. Recheck available cash and the response date before committing to costs.
Choose the right level of detail
| The simplified planner can help when… | Use a more detailed schedule when… |
|---|---|
| A regular weekly delivery cost is a useful approximation. | One-off purchases, mobilisation or uneven payroll dates materially change the low point. |
| Each entered claim has one expected collection date. | Payment is split, conditional or disputed, or business-day terms need interpretation. |
| A single percentage and later release represent retention. | Retention has caps, changing percentages or several releases. |
Swipe or scroll the table sideways to see every column.
Other jobs may draw on the same opening cash. Bring the project into the business forecast before treating its modelled reserve as money available only to this contract.
What to prepare
- List delivery costs and their payment dates.
- Record gross claims and evidence requirements.
- Explain the assumed collection lag.
- Check retention amounts and release conditions.
- Include other business commitments before committing.
Common questions
Can a contract have a positive result but still need cash upfront?
Yes. In the example, A$100,000 of collections exceeds A$80,000 of delivery costs, but the business reaches a cash shortfall before collecting the first claim.
Does the largest gap predict a funding approval?
No. It describes the entered schedule and reserve. Any financing proposal needs its own assessment, terms, costs and repayment plan.
General information only. Product terms and availability vary. Check the actual proposal and obtain advice appropriate to your circumstances.