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CONTROL: THE CONSTRUCTION FINANCIAL OPERATING SYSTEM 8 STEPS · 60 DAYS · YOUR BUSINESS FINALLY MAKES SENSE JOSH LUEBKER · MASTER ELECTRICIAN · $2.1B+ IN PROJECTS MANAGED TRADE CONTRACTORS FROM STARTUP TO $50M · AVAILABLE OCT 1, 2026 CONTROL: THE CONSTRUCTION FINANCIAL OPERATING SYSTEM 8 STEPS · 60 DAYS · YOUR BUSINESS FINALLY MAKES SENSE JOSH LUEBKER · MASTER ELECTRICIAN · $2.1B+ IN PROJECTS MANAGED TRADE CONTRACTORS FROM STARTUP TO $50M · AVAILABLE OCT 1, 2026
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SECURITY SYSTEMS CONTRACTORS
PHASE 5 · MEP

Why Security Systems Contractors Float the Equipment Order

QUICK ANSWER

Security systems contractors float the equipment order when cameras, panels, and access hardware get bought months before commissioning milestones pay anything back. Meanwhile service contracts, the most reliable revenue in the business, get priced by habit instead of cost. CONTROL funds the procurement float and prices the recurring base on real numbers.

BY JOSH LUEBKER · UPDATED JUL 2026 · LIVE ON CONSTRUCTIONCFO.NET
DIRECTORY
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PROOF FROM A RELATED TRADE
$365K AR Recovered
Electrical contractor, same system.
THE CASH PROBLEMS

The specific ways security systems contractors lose cash, pulled straight from what makes this trade different.

Equipment Procurement Float

Cameras, controllers, and licenses leave the account long before installation bills. Deposit terms and stored equipment billing put that float on the project.

Commissioning Milestone Billing

Head-end programming and system acceptance gate the last billing behind integration schedules. Milestone terms with dates keep the tail from aging.

Service Contract Revenue Baseline

Monitoring and service agreements are the recurring floor under the business. Priced against measured cost per account, they fund overhead through every slow quarter.

THE FIX

The CONTROL chapters that solve this for security systems contractors specifically.

CHAPTER 7
Monthly Cadence
A forecast that carries procurement and renewal timing.
CHAPTER 6
Project Management Standards
Stored equipment billing and commissioning milestones.
CHAPTER 5
Software & Bookkeeping
Books that separate project, service, and monitoring revenue.
RELATED READING
NICHE OS
Why Electrical Contractors Run Out of Cash
The parent trade with the same procurement math.
GUIDE
When Does a Contractor Need a CFO
When the recurring book gets big enough to need real numbers.
SYSTEM HUB
Run On C.F.O.S.
All 8 steps of the CONTROL system.
QUESTIONS SECURITY SYSTEMS CONTRACTORS ASK
Why do security systems contractors run out of cash on big installs?
Security systems contractors run out of cash on big installs because the hardware buy comes first. Cameras, panels, licenses, and servers can consume six figures months before commissioning milestones release billing. Stored equipment applications and deposit terms move that float onto the project instead of the company credit line.
How should a security contractor price service contracts?
A security contractor should price service and monitoring contracts from measured cost per account: truck rolls, tech hours, licensing, and central station fees. Chapter 5 of CONTROL separates the books so that cost is visible, and the renewal conversation runs on numbers instead of last year's rate plus a guess.
What profit margin should a security systems contractor target?
A security systems contractor should target 22 to 30% gross profit on project work and 12% net profit after all expenses, with overhead between 9 and 13%. The service base should carry the overhead on its own, so project wins become profit instead of survival.
Josh Luebker, President, SPM The Construction CFO
JOSH LUEBKER
PRESIDENT · SPM THE CONSTRUCTION CFO

Josh Luebker is a former commercial construction project manager and master electrician. He has managed 150+ projects totaling $2.1B+, including Google data centers, military bases, hospitals, and high-rises. CONTROL is built on what works in the field.

Josh leads SPM The Construction CFO (Sulphur Prairie Management, LLC), the fractional CFO for commercial subcontractors.

SPM THE CONSTRUCTION CFO → LINKEDIN →

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