Cian BrennanFounder, Quantum Contract Solutions · Founder

Most construction companies don’t realize they write their own cash flow problems — it’s burie

Name: Most construction companies don’t realize they write their own cash flow problems — it’s burie
Uploaded: 2026-01-08T04:00:41+00:00
Duration: 59 s
Channel: Cian Brennan
Description: In this short advisory video, the speaker explains how construction subcontractors unintentionally create cash‑flow problems by agreeing to lengthy…

8 Jan 2026 · 1 min

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In this short advisory video, the speaker explains how construction subcontractors unintentionally create cash‑flow problems by agreeing to lengthy, multi‑stage payment processes. He breaks down two common traps: (1) the delay between submitting a variation (extra‑work) request and receiving approval, which can add a month before the subcontractor can even issue a claim; and (2) the layered timeline of payment applications and invoices, where a payment application may take weeks to be approved before the final invoice is even considered, effectively extending the true payment period far beyond the contract’s nominal terms. The speaker urges subcontractors to audit the real time it takes to get paid, tighten approval windows, and negotiate shorter, more realistic payment turnaround times to avoid being unpaid for months.

Chapters

Construction subcontractors accidentally create cash flow traps in their businesses when they sign up to long payment terms is obviously one of them. There are two different ways it can happen. With your changes and your delays, the approval time from you submitting the documents, so let's say they've asked you to do additional work, the approval time for you submitting the document and it being approved and then you submitting your payment claim against that, right, that needs to be tightened right up. You don't find yourself in a situation where it takes them a month to approve your variation and then you get your 30-day payment terms. That's the first thing. And then in the actual payment terms, it might say something nice like 14-day payment terms. That's to submit your invoice. But before that, you gotta submit your payment application. Mightn't have how long they're gonna take to approve that. So you submit your payment application, takes 21 days for them to approve that. Then you submit your invoice against that, and that's another 14 days or 30 days or whatever it is to approve that. And that's the whole length of time. So you gotta see how long it actually is before you get paid and negotiate that down as much as you possibly can.