When to Tweak Your Allocation Percentages

Constantly adjusting Profit First allocation percentages in construction can break the feedback you need to control cash flow. Current Allocation Percentages (CAPs) reveal where money actually goes, while Target Allocation Percentages (TAPs) provide direction; confusing them can starve jobs and accidentally fund overhead. The approach is to track CAPs for 6–8 weeks, then lock in four foundations: capture true CAPs, set construction-aware TAPs, price bids from allocations, and use a weekly/biweekly allocation cadence with allocation-first discipline. Seven triggers signal when to tweak percentages, followed by six safeguards like protecting JobEx, updating estimating templates immediately, and using risk-adjusted profit as a shock absorber. 🧰 Join the Permanently Profitable Contractor: https://profitfirstconstruction.com/p... 📘 GET THE BOOK: Profit First for Commercial Construction, available now on Amazon: https://amzn.to/4iPdQ3w 💼 NEED HELP IMPLEMENTING THIS? Book a consultation with our team at https://profitfirstconstruction.com TIMESTAMPS: 00:00 Stop Thermostat Tweaking 00:53 CAPs vs TAPs Explained 02:07 Track Patterns First 02:34 Four Foundations Setup 04:24 The Growth Gate Test 06:05 Seven Adjustment Triggers 08:20 Real Numbers Example 09:03 Six Safeguards Checklist 10:09 PFCC vs Profit First 10:53 Discipline and Next Steps CONNECT WITH US: 🌐 https://ProfitFirstConstruction.com 📧 Questions? Drop them in the comments below Subscribe for weekly strategies on running a more profitable construction business. Hit that notification bell so you never miss an episode.