Contracting finance turns on four things: profit by project, retentions held on both sides, slow government receipts and cash on site. Naarvin tracks progress claims and retentions per contract, follows each government invoice through its collection stages, reports profit by project even when the ERP leaves costs untagged, and controls custody and petty cash on site. A person approves every payment; Naarvin never moves money.
What makes finance in contracting different?
- Revenue comes in progress claims, and the customer holds back retention on each one.
- Subcontractors are paid the same way, so the company holds retention too.
- Government projects pay through several stages, and the timing decides the cash position.
- Sites run on custody advances and petty cash, far from the finance office.
- Project margins look healthy until site salaries, equipment and overheads are spread.
How does a contracting company run finance with Naarvin?
- Log claims and retentionsFor each contract, with a customer or a subcontractor, record the progress claims: percentage complete, amount approved, retention withheld and advance recovered. Naarvin shows what was approved, withheld, recovered and released, and the retention still held.
- Recognise revenue by progressRevenue recognised by progress is set against what was billed, showing unbilled revenue or billing in advance for each contract.
- Follow government receiptsCustomers tagged as government are tracked through their stages, such as submitted, awaiting the acceptance certificate, with the Ministry of Finance, and paid, with the expected date of each receipt.
- See profit by projectCosts the ERP left untagged are suggested to projects from their text, supplier and account, and shared costs are spread by your allocation rules.
- Control site cashCustody advances and petty cash are issued, topped up with a second approval, settled with receipts and closed at zero.
- Plan the cashThe 13-week forecast counts government receipts on their expected dates, so a slow ministry shows up before payroll does.
What does Naarvin prepare, and what does your team decide?
| Area | Naarvin | Your team |
|---|---|---|
| Retentions | Retention held and released per contract, both sides | Records claims and releases |
| Government receivables | A weekly watch list with each invoice's stage and expected date | Updates the stage as documents move |
| Project profit | Suggested tags and allocated shared costs | Accepts suggestions and sets allocation rules |
| Site cash | Custody and petty cash balances, with policy checks | Approves claims and top-ups |
| Cash | 13-week forecast with government timing | Decides on funding and payment timing |
What do you need to start?
- Your accounting system connected, with projects where the ERP records them.
- Your contracts with their retention and advance terms, and the claims to date.
- Which customers are government entities.
- Your custody and petty cash holders and their current balances.
Who is this for?
Main contractors, subcontractors, fit-out and MEP companies, and engineering firms that bill by progress, especially those with government clients. A contractor with one project at a time may manage with its ERP and a claims sheet.
Questions people ask
Does Naarvin track retention we hold from subcontractors?
Yes. Each contract is either with a customer, who withholds retention from you, or with a subcontractor, from whom you withhold it. Both sides show what is held and released.
Does it connect to Etimad?
No. You record each government invoice's stage, such as submitted on Etimad or awaiting the acceptance certificate, and Naarvin tracks it and its expected receipt date.
Can we see profit by project if our ERP doesn't tag costs?
Yes. Naarvin suggests the project for untagged lines and spreads shared costs by your rules. Your ERP's own data is never changed.
Does Naarvin pay subcontractors?
No. It prepares payment files for a person to approve and upload to the bank. Naarvin never moves money.