How Much Does an Outsourced CFO Cost?

By Martin · Updated 2026-02-02
An outsourced (fractional) CFO for a construction company typically costs $3,000-$8,000 per month, or roughly $36K-$96K annually. This compares to $250K-$440K all-in for a full-time CFO. Pricing depends on company complexity, revenue size, number of active jobs, and scope of engagement. Most contractors in the $5M-$50M range get 80% of the value at 20-30% of the cost.

Pricing is the first question every contractor asks about outsourced CFO services, and it's the wrong first question. The right first question is "what's the cost of not having strategic financial leadership?" But I understand — you need to know the numbers before you can evaluate the ROI.

The Numbers: Outsourced vs. Full-Time

Full-time CFO (construction-experienced):

Outsourced/fractional CFO:

The math is straightforward: outsourced CFO services cost roughly 20-30% of what a full-time hire costs. For most contractors under $50M in revenue, that's the right trade-off.

What Drives the Price

Not every outsourced CFO engagement costs the same. Here's what moves the number:

Company size and complexity

Number of active jobs More jobs means more WIP analysis, more portfolio risk management, and more time. A contractor running 5 jobs needs less CFO time than one running 25.

Financial condition If you're in good financial shape and need proactive strategic guidance, the engagement is smaller. If you're in a cash crisis, need to restructure banking relationships, or are preparing for a major transaction, the upfront work is significantly heavier.

Scope of engagement A narrow scope (monthly WIP review + quarterly strategic planning) costs less than a comprehensive engagement that includes banking relationship management, surety meetings, cash forecasting, M&A advisory, and board-level reporting.

What You Get for the Money

At $5K/month — the midpoint for most mid-sized contractors — a typical engagement includes:

Monthly (every month, non-negotiable):

Quarterly:

As-needed:

The ROI Question

Contractors always want to know: "Will this pay for itself?" In my experience, a good outsourced CFO pays for themselves within the first quarter through one or more of these:

Cash flow improvement. Better billing strategy, faster collections, and proactive cash forecasting typically free up 5-15% of working capital. On a $15M contractor, that's $750K-$2.25M in improved cash position. Even the interest savings on reduced line of credit draws often exceed the monthly retainer.

Margin preservation. Catching margin fade 60 days earlier — which is what weekly WIP analysis enables — can save 2-5 margin points on affected jobs. One $3M job improving from 8% to 13% margin adds $150K to your bottom line. That's 2.5 years of CFO fees from one job.

Bonding capacity. Better financial presentation and balance sheet management can increase bonding capacity 20-40%. If that lets you pursue one additional $5M project you would have otherwise passed on, the profit from that job dwarfs the CFO cost.

Avoided mistakes. The deals you don't do are often more valuable than the ones you do. A CFO who talks you out of one bad equipment purchase, one underpriced bid, or one overextended growth plan saves multiples of their fee.

Pricing Models to Watch Out For

Hourly billing. Some outsourced CFOs bill hourly ($200-$400/hour). This creates a perverse incentive — you hesitate to call when you need advice because the clock is running. A monthly retainer is almost always better because it encourages proactive communication.

Too cheap. If someone offers CFO services for $1,500/month, they're either not experienced, not giving you real time, or calling bookkeeping "CFO services." Strategic financial leadership from an experienced construction CFO has a floor around $3K/month.

Project-based only. Some firms only engage for specific projects (M&A, financing, restructuring). That's fine for those situations, but it's not a substitute for ongoing strategic financial management. You need someone who knows your business month-to-month.

Long-term contracts. Be wary of firms requiring 2-3 year commitments. A good outsourced CFO earns your continued business every month. A 6-12 month initial commitment is reasonable; beyond that, it should be month-to-month.

How to Compare Options

When evaluating outsourced CFO providers, ask:

  1. How many construction clients do you currently serve? You want someone with deep industry experience, not someone learning construction finance on your dime.
  2. What does a typical month look like? Get specific deliverables, not vague promises of "strategic support."
  3. Will you attend banking and surety meetings? If not, you're not getting full CFO value.
  4. How do you handle urgent issues? Cash crises don't wait for the monthly meeting. You need accessibility.
  5. Can I talk to current clients? References from contractors of similar size and complexity are essential.

The Bottom Line

For most contractors in the $5M-$50M range, outsourced CFO services at $3K-$8K/month represent the best value for financial leadership. You get experienced, strategic guidance at a fraction of full-time cost, with the flexibility to scale the engagement as your needs change.

The real question isn't whether you can afford an outsourced CFO. It's whether you can afford the cost of making major financial decisions without one — the missed margin, the cash surprises, the bonding limitations, and the growth opportunities you can't see because nobody is looking forward.