Stop Losing Money! Why Your Construction Bids Aren't Paying Off

Learn how to stop winning bids yet staying cash-starved by calculating Target Allocation Percentages (TAPs) that fit real construction cash flow—not generic Profit First revenue-tier charts. Break every dollar into three PFCC buckets: JobEx (direct job costs), OpEx (overhead/admin plus items like loan principal that hit the bank but not the P&L), and Residual Revenue (POT: Profit, Owner’s Comp, Tax). Start by pulling 12 months of bank outflows to find your Current Allocation Percentages (CAPs), then set construction-aware JobEx and OpEx targets using a risk lens for retainage, slow pay apps, schedule pressure, and material volatility. Compute the residual needed, split it into profit/owner’s comp/tax, and close any gap through pricing and/or operational improvement. Embed targets into estimating, bid retainage-aware, and shift gradually from CAPs to TAPs with a weekly/biweekly allocation rhythm so new work self-funds without breaking payroll. 🧰 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 The Problem: One-Size-Fits-All Doesn't Fit Construction 01:35  The Three Buckets: Where Your Cash Actually Lives. 03:07 Step 1: Capture Your Current Allocation Percentages 04:28  Step 2: Set Construction-Aware JobEx and OpEx Targets 05:39  Step 3: Compute Residual and Split Profit, Owner's Comp, and Tax 07:20  Step 4: Embed Your Targets Into Pricing and Move Gradually. 09:14  The Bottom Line: TAPS are Construction Economics Made Visible 10:13 Call to action 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.