414 Who Should Carry The Cash Burden In Residential Construction? with Shane Durkin

Nick and Tyler bring Shane Durkin back, with Brad Leavitt joining the conversation, to challenge one of construction's most persistent problems: how project money moves and who should actually carry the financial risk. They get into deposits, escrow accounts, credit card rewards, cost-plus construction, project-level accounting, lien waivers, trade payments, and the hidden complexity that comes from running millions of dollars of client funds through a builder's business.  Shane explains how LedgerWise separates project finances into their own accounts while Brad, Nick, and Tyler push on the tradeoffs, risks, and real-world practicality of the model. Ultimately, the conversation asks whether builders should be spending their energy managing cash flow and financial workarounds at all, or whether a simpler system could let them get back to building.    From Contractor to Company Workshop: https://www.moderncraftsman.co/workshop-registration Sign up for the Modern Craftsman Community: 👉🏻 MC Community Sign-up Sign up for the newsletter: Newsletter Sign-up   Shane's Websites: https://www.buildpatriot.com https://www.ledgerwise.com     ShowNotes: Cash Flow Challenges in Construction (0:00) Introduction of Ledgerwise and Construction Accounting (0:39) Discussion on Construction Accounting Models (4:24) Details of the Escrow Model (6:41) Benefits and Challenges of the Escrow Model (6:58) Case Study: Handling Project Cancellations (9:27) Conclusion and Final Thoughts (10:28) Minimum Balance and Client Trust (10:42) Payment Process and Trade Onboarding (11:19) Lien Waivers and Preliminary Notices (11:37) Cost and Revenue Model (74:47) Builder Testimonials and Industry Challenges (79:27) Upcoming Events and Final Thoughts (83:04)   Partners:  Andersen Windows Harnish Workwear  Use code H1025 and get 10% off their H-label gear   The Modern Craftsman: linktr.ee/moderncraftsmanpodcast Find Our Hosts:  Nick Schiffer  Tyler Grace  Podcast Produced By: Motif Media