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.
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.
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.