Underbillings Bad. Overbillings Better: The Cash Flow Truth Construction Owners Can't Ignore

Kathe Barrington is a CPA specializing in construction. Before finding her true passion in cost accounting and then the construction industry, Kathe worked in different industries, including software, hardware, real estate, retail, and non-profits. Working directly with owners, banks, bonding agents, and CPA firms, Kathe helps bringing the entire team together so that they can make the best management decisions for the organization's sustainability and future growth. Some of the services she provides include budgeting, forecasting, cost segregation, basic bookkeeping, and software implementations.  Key Takeaways - Understanding over-billings and under-billings. - Why under-billing is always a warning sign.  - The impact of billing patterns on bonding and banking relationships. - Owner responsibility and accountability. - Over-billing and customer relationships.  - Treating over-billed cash with discipline and clarity.   Connect with Kathe Barrington LinkedIn - linkedin.com/in/kathe-barrington-a6346337/  Website - kbcpa.biz/  FaceBook - web.facebook.com/people/Kathe-Barrington-CPA/100072271041746/   Previous episodes with with Kathe Barrington WIP Reports Made Simple: The Key to Stopping Hidden Job Losses How to Use Your WIP to Protect Cash and Grow Profitability Physical Progress vs. Financial Reporting in Construction Projects

The hardest transition in construction isn't technical—it's moving from building projects to leading people. In this episode, Eric Anderton talks with leadership expert Joel M. Hilchey about why so many construction leaders struggle once their hands come off the tools. They explore career development conversations, micro-feedback, why high performers leave first, and the subtle leadership habits that quietly drain initiative and ownership. If you've ever felt guilty because your boots aren't muddy anymore—or caught yourself jumping back into the work "just to help"—this episode will hit home. 🎧 Practical. Honest. No fluff. 📘 Book: https://www.amazon.com/half-Habits-Highly-Defective-Bosses/dp/1069639508/ 🧠 Free Assessment: https://www.joelhilchey.com/bossessment.html

Bonding is one of the biggest bottlenecks in construction growth—and most contractors misunderstand it. In this episode, Eric Anderton talks with Gary Eastman, President of Swift Bonds and Access Surety, about what sureties really look for when deciding whether to bond a contractor. They break down the Three C's—Character, Capacity, and Capital—why character matters more than most owners realize, what happens behind the scenes during bond claims, and how smart contractors increase bonding capacity without blowing up their business. If you want to bid bigger jobs, improve margins, and reduce risk, this is a must-listen.  

Construction doesn't solely rely on blueprints and hard hats; it also relies on curiosity, hands-on learning, and people who make the buildings come to life. For those who step into job sites, success is measured by attitude, adaptability, and willingness to ask questions. From building psychological safety to leveraging technology like robotics, the modern superintendent is constantly learning how to work smarter by balancing human expertise with innovation. Erin Saiki is a superintendent at DPR Construction who started her career pursuing civil engineering at UC Berkeley and discovered a passion for construction during a 2018 summer internship with DPR. After her graduation, Erin joined DPR as a project engineer but quickly realized her strengths and enthusiasm were better suited to the field rather than an office environment. Aligning herself with DPR's field engineer program, she moved to site leadership and has since progressed to become a superintendent.   Highlights [00:20] Erin path to construction leadership.  [02:31] The importance of hands-on field experience. [08:00] Making clear, objective decisions based on what's best for the job. [11:42] Psychological safety in construction. [16:50] Collaborative leadership vs. traditional leadership.  [20:52] Management of tough conversations and self-awareness.  [22:37] Bridging technology and craft work in construction. [28:44] The importance of getting involved early in the design phase.  [33:14] The importance of addressing mental health issues in construction.  [39:56] Showing up, volunteering, and finding ways to add real value. [41:18] The superintendent of the future.   Key Takeaways Touch, observe, and follow. Spend time in the field to see how drawings translate into real installations. Go into the field expecting to learn and be comfortable admitting what you don't know. Gather input from all trades before deciding and make the call once you have enough information. Build psychological safety. Encourage workers to speak up without fear of blame. Prepare mentally before a tough conversation and focus on what you can control, not how it will be received. Explain what the technology does and doesn't do and frame technology as support, not replacement. Talk openly about mental health on site and build a supportive, respectful jobsite culture where workers feel safe. Connect with Erin SaikiLinkedIn - linkedin.com/in/erin-saiki/  Website - dpr.com 

The field says the job is further along. Accounting says it's not. In this episode, Eric Anderton and Kathe Barrington, CPA explain why that disconnect exists—and why both sides are right. The field measures physical progress. Accounting measures financial reporting. When those systems fall out of sync, WIP becomes unreliable, billing lags, and cash flow suffers. This episode is Part 3 of the Construction Accounting Series, following: WIP Reports Made Simple How to Use Your WIP to Protect Cash and Grow Profitability If you want fewer surprises and better control over your jobs, don't miss this conversation.  

Dan Lester returns to Construction Genius for Episode 2 — and the numbers are getting louder. Clayco's latest Combating Stigma findings show 64% of construction workers report anxiety or depression in the last 12 months, up from 54% the year prior.  Eric and Dan go upstream: schedules, client expectations, leadership culture, and why "awareness" isn't the same as support. You'll hear practical ways leaders can spot struggle, have better conversations, and build a jobsite culture that drives performance without grinding people into the dirt. We'll also link to Dan's first episode: "From Stigma to Support | Ep. 333." constructiongenius.com

Construction sales feel like a grind because the root problem isn't sales — it's the business infrastructure underneath. In this episode, we unpack the 10 structural roadblocks that make selling construction work under $100M so difficult. These issues include unclear vision, missing strategy, weak financial visibility, poor org structure, broken incentive systems, no management rhythm, and outdated hiring and development practices. Fix these, and sales becomes dramatically easier. Ignore them, and every bid feels like a battle. If you're tired of grinding, guessing, and hoping for better results, this episode gives you the roadmap. Top 10 Reasons Contractors Struggle to Scale:       1.    Lack of a clear vision for the future       2.    Lack of a clear, well-documented strategy       3.    No critical metrics defining business performance       4.    Poorly defined organizational structure and role clarity       5.    Limited financial visibility and business acumen       6.    Misaligned or poorly designed incentive systems       7.    Undefined cultural norms, values, and beliefs       8.    No management system to drive communication and accountability       9.    Ineffective hiring processes       10.   Lack of employee development capability   🔗 Connect with Matthew Neuberger Website: https://go.sandler.com/neuberger/ Contrarian Contractor: https://neuberger-sandler-22152421.hs-sites.com/the-contrarian-contractor Book an Appointment: https://meetings.hubspot.com/matthew-neuberger?uuid=57dae5c6-56fd-4c1e-bf07-d8445f7fe77 LinkedIn: https://www.linkedin.com/in/neubergerco/ Listen to another conversation with Matthew: https://www.constructiongenius.com/the-hit-rate-revolution-achieving-35-50-win-rates-and-doubling-revenue-ep-345

Most contractors wait too long to prepare their business for a sale—and lose millions because of it. In this episode, I talk with Cameron Bishop, Managing Director at Raincatcher, about what it really takes to make your construction company buyer-ready in the next 12 months. Cam brings 40+ years of executive and M&A experience and has completed more than 70 transactions worth over $500M. He breaks down the biggest deal killers, the accounting mistakes that stall closings, how to remove owner dependency, and why customer concentration over 20% scares buyers away. 🎧 Listen now, and connect with Cam at raincatcher.com or on LinkedIn. 📧 [email protected] | 📞 816-591-6610

Most leadership discussions avoid the most uncomfortable question: 👉 What actually makes a leader good? In this episode, I sit down with Father Daniel Brandenburg, author of Leader Like No Other: What Secular Leadership Models Reveal About Jesus, a book that flips the usual leadership conversation on its head. After completing a doctorate in leadership, Daniel realized something startling: Jesus, arguably the most influential leader in history, is almost completely absent from modern leadership theory. So he took ten major secular leadership paradigms and compared them directly with Jesus' actions, decisions, and interactions. This conversation isn't theological. It's intensely practical. We explore how moral judgment, purpose, discipline, and organizational structure shape your company's ability to perform, grow, and stay healthy. And we tie every concept back to real-world behavior, decisions, and consequences inside construction organizations.   Learn More About Daniel Brandenburg LinkedIn - linkedin.com/in/fr-daniel-brandenburg-lc-89109921/  Website - frdanielbrandenburg.com/    Leader Like No Other: What Secular Leadership Models Reveal About Jesus Paperback by Fr. Daniel Brandenburg amazon.com/Leader-Like-No-Other-Leadership/dp/B0DYJJBKMD   

In Part 2 of our WIP Mastery Series, CPA Kathe Barrington returns to show contractors how to use the WIP as a strategic decision-making tool. We dig into the three numbers every owner must check first, how underbilling reveals deeper project or client issues, and how the WIP exposes PM discipline long before problems hit the P&L. Kathe also walks through backlog planning, bid strategy, indirect cost allocation, and how to spot margin fade before it becomes expensive. If you want the financial clarity to run your company proactively—not reactively—this episode is essential. Learn more about Kathe: Website: https://www.kbcpa.biz LinkedIn: https://www.linkedin.com/in/kathe-barrington-a6346337/