Prepared by BlackpeakCFO Controller Services · Issued February 3, 2026 · Actuals through January 31, 2026. Revenue recognized on Percentage-of-Completion method (ASC 606). WIP schedule reconciled monthly — underbillings are current assets, overbillings current liabilities. Retainage (10%) excluded from current AR/AP and shown separately. Texas Franchise Tax accrued at $2,400/month. Workers’ Compensation policy year ends April 2026. For management use only — confidential.
BLACKPEAKCFO™ | FRACTIONAL CONTROLLER SERVICESLONE STAR COMMERCIAL CONTRACTORS LLC · JANUARY 2026CONFIDENTIAL MANAGEMENT PACK
IndexTable of ContentsConstruction Management Accounts · January 2026 · BlackpeakCFO
1
Cover Page
Company overview, Houston TX operations, basis of preparation and confidentiality
2
Table of Contents
Section index, key highlights and percentage-of-completion accounting basis
3
CEO Dashboard & KPI Scorecard
8 headline KPIs, verdict dashboard and management commentary — January 2026
4
WIP Schedule
Percentage-of-completion for 6 active jobs — overbillings and underbillings analysis
5
Job Cost Report
Cost breakdown by category for top 4 active projects with budget variance
6
Income Statement
P&L — January 2026 actual vs Dec 2025 vs January budget with variances
7
Cash Flow Statement
Operating, investing and financing cash flows — retainage analysis and 6-month trend
8
AR Aging Report
Accounts receivable aging by client — retainage schedule and collection status
9
AP & Subcontractor Aging
Payables aging by vendor and sub — retainage withheld schedule
10
Backlog & Project Pipeline
Remaining backlog by job, bid pipeline and weighted probability analysis
11
Budget vs. Actual Variance
Line-by-line P&L variance with detailed commentary — January 2026
12
CFO Actions & 90-Day Plan
Immediate priorities, 30-day actions and strategic initiatives — Texas compliance
✨ Key Highlights — January 2026
▲Revenue $44K ahead of budget (+7.6%) driven by Westchase Medical acceleration — improved billing cadence under new PM increased January draws
▲Gross margin 21.2% vs 20.0% budget — better subcontractor pricing on Westchase MEP and reduced material waste on two jobs in January
⚠Net underbillings $193,400 — billing team to accelerate invoicing on Galleria HQ (0% billed, $176,000 earned to date). First invoice due Feb 28.
🚨 What This Report Caught That You’d Have Missed
(1) Galleria HQ has $176,000 in earned revenue with $0 billed — that’s cash sitting on the table. Without this report, you wouldn’t know until the bank account got tight. (2) Steel prices up 4.2% since Q4 quote — if you don’t lock alternate suppliers now, your next 3 projects inherit that margin hit. (3) Labor at 109.7% of budget across the portfolio — not one bad week, but a pattern that costs $42,000+ annually if uncorrected.
Accounting Basis: Revenue recognized on Percentage-of-Completion method (ASC 606) — based on costs incurred as a proportion of total estimated costs. WIP Schedule reconciled monthly: underbillings (costs in excess of billings) are recorded as current assets; overbillings (billings in excess of costs) as current liabilities. Retainage (10% standard per contract) excluded from current AR and AP; shown in separate schedules. Texas Franchise Tax accrued monthly at $2,400 (annual no-tax-due threshold assessment; full filing due May). Prevailing wage requirements apply to any City of Houston public work contracts. OSHA 300 log maintained — 0 recordable incidents YTD.
Lone Star Commercial Contractors LLC · Houston, Texas · BlackpeakCFO Controller Services · Construction Management PackPage 2 of 12
BLACKPEAKCFO™ | FRACTIONAL CONTROLLER SERVICESLONE STAR COMMERCIAL CONTRACTORS LLC · JANUARY 2026CONFIDENTIAL MANAGEMENT PACK
DashboardCEO Dashboard & KPI ScorecardJanuary 2026 · vs. Budget & vs. December 2025
Monthly Revenue
$624,000
Budget $580,000 ▲ +7.6%
Gross Profit
$132,300
Margin 21.2% ▲ vs 20.0% budget
EBIT
$44,900
7.2% margin ▲ +68.8% vs budget
Active Backlog
$5,437,600
6 active projects ● stable
Cash Position
$435,500
+$51,300 vs Jan 1 ▲ improving
AR Outstanding
$915,100
Incl retainage $387,200 ●
Active Jobs
6
All in Houston MSA ●
Headcount
42
30 field + 12 office ● stable
January 2026 Verdicts:✓ Revenue AHEAD+$44K vs budget (+7.6%) — Westchase acceleration✓ Margin ON TARGET21.2% actual vs 20.0% budget — sub pricing favorable✓ Cash IMPROVING$435.5K closing — strongest since Q3 2025✓ Safety 0 INCIDENTS YTDOSHA 300 log: 0 recordable incidents year-to-date 2026
January Revenue vs. Budget · By Driver
Driver
Actual
Budget
Var
Westchase Medical Center
178,400
148,000
+30,400
Downtown Hotel Phase 2
142,600
148,000
(5,400)
Midtown Office Suite
126,400
118,000
+8,400
Other 3 Jobs
176,600
166,000
+10,600
TOTAL REVENUE
624,000
580,000
+44,000
📌 January Commentary: Revenue outperformed by $44K primarily due to Westchase Medical reaching a major milestone (HVAC rough-in completion) triggering a $30K billing uplift. Cash closing at $435,500 — best level since Q3 2025 — driven by strong collections. Key watch item: Galleria Corporate HQ has $0 billed against $176K earned — first invoice must be issued by February 28. Downtown Hotel labor costs running over budget — mitigation plan in place (see P5). Houston construction labor market tightening in Q1 2026.
P&L Summary · Jan 2026
Line
Actual
Margin
vs Bdgt
Contract Revenue
624,000
100%
+7.6%
Total COGS
(491,700)
78.8%
fav
Gross Profit
132,300
21.2%
+1.2pp
Total G&A
(87,400)
14.0%
—
EBIT
44,900
7.2%
+68.8%
Net Income
41,300
6.6%
+79.6%
🏗 Houston Market Note: Commercial construction activity remains strong across the Houston MSA in Q1 2026. The Texas Medical Center expansion and Post Oak corridor continue to drive medical and office fit-out demand. Labor availability for skilled trades tightening — recommend confirming subcontractor commitments for H2 pipeline projects. No material supply chain disruptions currently impacting active jobs.
Cash flow strongest since Q3 2025 — $435,500 closing. Net underbillings $193,400: Galleria HQ invoice must be issued by Feb 28. Safety record excellent: 0 OSHA recordable incidents.Page 3 of 12
BLACKPEAKCFO™ | FRACTIONAL CONTROLLER SERVICESLONE STAR COMMERCIAL CONTRACTORS LLC · JANUARY 2026CONFIDENTIAL MANAGEMENT PACK
WIPWork-in-Progress Schedule — Percentage of Completion MethodJanuary 31, 2026 · All amounts in USD · ASC 606
Job Name
Location
Contract Value
% Complete
Revenue Earned
Billed to Date
Over / (Under) Billed
Est. Completion
Midtown Office Suite
Houston
1,850,000
78%
1,443,000
1,510,000
+67,000 OVER
Mar 2026
Westchase Medical Center
Houston
2,340,000
52%
1,216,800
1,180,000
(36,800) UNDER
Jun 2026
Energy Corridor Retail
Houston
890,000
94%
836,600
845,000
+8,400 OVER
Feb 2026
River Oaks Law Firm
Houston
1,120,000
23%
257,600
224,000
(33,600) UNDER
Aug 2026
Downtown Hotel Phase 2
Houston
1,640,000
41%
672,400
650,000
(22,400) UNDER
Sep 2026
Galleria Corporate HQ
Houston
2,200,000
8%
176,000
0
(176,000) UNDER
Dec 2026
TOTAL
10,040,000
4,602,400
4,409,000
(193,400) NET UNDER
Balance Sheet WIP Positions
Costs in Excess of Billings (Underbillings — current asset)$268,800Billings in Excess of Costs (Overbillings — current liability)($75,400)Net Underbilled Position($193,400)
Overbillings represent advance billing — revenue will be earned in future periods per ASC 606.
⚠ ALERT — Galleria Corporate HQ: Job is 8% complete with $0 billed against $176,000 earned. This is the largest single underbilling. First progress invoice must be issued by February 28, 2026. Owner: Billing Manager. Client: Galleria Development Co.
WIP reconciled monthly per ASC 606. Underbillings ($268,800) = current asset. Overbillings ($75,400) = current liability. Net underbilled $193,400 — billing acceleration required on 3 jobs.Page 4 of 12
BLACKPEAKCFO™ | FRACTIONAL CONTROLLER SERVICESLONE STAR COMMERCIAL CONTRACTORS LLC · JANUARY 2026CONFIDENTIAL MANAGEMENT PACK
Job CostJob Cost Analysis — Top 4 Active ProjectsPhase budget to actual · January 31, 2026 · BlackpeakCFO
⚠ Downtown Hotel Phase 2 — Cost Overrun Commentary: Labor running 9.7% over budget due to site access delays (City of Houston parking variance) causing overtime on three weekends. Additional site supervision added February 3. Equipment (120% of budget) — unexpected crane extension $6,400. Materials escalation on Westchase being actively managed — two alternate steel suppliers approved January 2026. Both jobs require weekly cost review through Q1.
All Active Jobs — Margin Summary
Job
Bdgt Mgn
Proj Mgn
Status
Westchase Medical
21.5%
22.8%
AHEAD
Downtown Hotel P2
21.0%
18.4%
WATCH
Galleria Corp HQ
22.5%
23.0%
ON TRACK
Midtown Office
21.2%
20.8%
MONITOR
River Oaks Law Firm
21.0%
21.5%
ON TRACK
Energy Corridor Retail
19.5%
19.2%
MONITOR
Westchase Medical margin +1.3pp ahead of budget. Downtown Hotel WATCH — site access delays caused overtime. Additional supervision added Feb 3. Weekly cost reviews ongoing.Page 5 of 12
BLACKPEAKCFO™ | FRACTIONAL CONTROLLER SERVICESLONE STAR COMMERCIAL CONTRACTORS LLC · JANUARY 2026CONFIDENTIAL MANAGEMENT PACK
P&LWhere the Money Went — January 2026Actual vs. December 2025 Actual vs. January Budget · All amounts USD · POC method
Line Item
Jan 2026 Actual
Dec 2025 Actual
Jan Budget
Variance $
Variance %
REVENUE
Contract Revenue (POC)
624,000
698,400
580,000
+44,000
+7.6%
COST OF REVENUE
Direct Labor
168,400
182,600
159,000
(9,400)
-5.9%
Materials & Supplies
187,200
204,800
178,000
(9,200)
-5.2%
Subcontractors
98,400
114,200
94,000
(4,400)
-4.7%
Equipment Rental
24,100
28,400
23,000
(1,100)
-4.8%
Other Direct Costs
13,600
16,200
12,000
(1,600)
-13.3%
TOTAL COST OF REVENUE
491,700
546,200
466,000
(25,700)
-5.5%
GROSS PROFIT
132,300
152,200
114,000
+18,300
+16.1%
GROSS MARGIN %
21.2%
21.8%
19.7%
+1.5pp
—
GENERAL & ADMINISTRATIVE EXPENSES
Overhead Salaries (12 staff)
62,400
62,400
62,400
0
—
Office Rent (Houston HQ)
4,800
4,800
4,800
0
—
Insurance (GL / Workers Comp)
12,400
12,400
12,400
0
—
Vehicle & Fuel
7,800
8,900
7,800
0
—
TOTAL G&A
87,400
88,500
87,400
0
—
EBIT
44,900
63,700
26,600
+18,300
+68.8%
Interest Expense
(1,200)
(1,200)
(1,200)
0
—
TX Franchise Tax Accrual
(2,400)
(2,400)
(2,400)
0
—
NET INCOME
41,300
60,100
23,000
+18,300
+79.6%
NET MARGIN %
6.6%
8.6%
4.0%
+2.6pp
—
✨ Revenue Beat (+$44K): Percentage-of-completion billings ahead of budget on Westchase Medical (milestone trigger +$30K) and Midtown Office Suite (+$8K near-completion acceleration). December 2025 revenue higher at $698K reflects year-end schedule pushes by multiple clients.
⚠ Note on G&A: Vehicle & Fuel at $7,800 vs $8,900 December (seasonal — fewer site visits during holiday period). All G&A categories on or within budget for January. Texas Franchise Tax ($2,400/month) is an estimated accrual — annual return and final liability due May 2026. BlackpeakCFO will prepare estimate by April 1.
Net Income $41,300 (+79.6% vs budget). Gross margin 21.2% vs 19.7% budget. December 2025 revenue $698K included year-end project accelerations from two clients. TX Franchise Tax accrued monthly.Page 6 of 12
BLACKPEAKCFO™ | FRACTIONAL CONTROLLER SERVICESLONE STAR COMMERCIAL CONTRACTORS LLC · JANUARY 2026CONFIDENTIAL MANAGEMENT PACK
CashCash Flow Summary — January 2026Operating, Investing & Financing · Jan 2026 · Plus 6-Month Operating Trend
Cash Flow Item
January 2026
OPENING BALANCE
Cash — January 1, 2026
384,200
OPERATING ACTIVITIES
Collections from Clients (net of retainage)
+612,400
Direct Labor Payroll
(168,400)
Materials & Supplier Payments (some Net-30)
(285,800)
G&A & Overhead Payments
(72,400)
NET OPERATING CASH FLOW
+85,800
INVESTING ACTIVITIES
Equipment Purchase (service van)
(22,000)
NET INVESTING CASH FLOW
(22,000)
FINANCING ACTIVITIES
Equipment Loan Repayment
(12,500)
NET FINANCING CASH FLOW
(12,500)
NET CHANGE IN CASH
+51,300
CLOSING CASH — January 31, 2026
435,500
Check: $384,200 + $51,300 = $435,500
✓ Reconciled
Retainage Analysis — January 31, 2026
Retainage Receivable (10% held by clients)$387,200Retainage Payable (10% we hold from subs)($144,800)Net Retainage Position (owed to others)($242,400)
Retainage typically released 30–60 days after substantial completion per contract terms. Largest upcoming release: Midtown Office Suite $92,500 in March 2026.
6-Month Operating Cash Flow Trend
Month
Op. Cash Flow
Note
Aug 2025
42,100
Soft collections
Sep 2025
68,400
Q3 milestone billings
Oct 2025
54,200
Normal operations
Nov 2025
38,800
Holiday slowdown
Dec 2025
71,400
Year-end client payments
Jan 2026
85,800
Best 6-month period
💰 Cash position is the strongest since Q3 2025. Strong January collections ($612K) against $624K revenue reflects good DSO management. Materials payments include $285,800 which captures some December invoices paid in January (Net-30 terms). Equipment purchase ($22K service van) funded from operations — no additional borrowing required.
Operating cash flow $85,800 — 6-month high. Retainage held by clients: $387,200 (to be released on job completion). Net retainage owed to subs: $144,800.Page 7 of 12
BLACKPEAKCFO™ | FRACTIONAL CONTROLLER SERVICESLONE STAR COMMERCIAL CONTRACTORS LLC · JANUARY 2026CONFIDENTIAL MANAGEMENT PACK
AR AgingAccounts Receivable Aging — January 31, 2026Excludes retainage $387,200 (shown separately below) · Net-30 standard terms
Client
Job
Current 0–30
31–60 Days
61–90 Days
91+ Days
Total AR
Westchase Medical Partners
Westchase Medical
98,400
42,200
—
—
140,600
Four Seasons Hotel Group
Downtown Hotel P2
86,200
28,400
18,200
—
132,800
Midtown Office LP
Midtown Office Suite
—
42,600
28,400
—
71,000
River Oaks Legal LLC
River Oaks Law Firm
48,400
—
—
—
48,400
Galleria Development Co
Galleria Corp HQ
36,200
—
—
—
36,200
Energy Corridor Retail LP
Energy Corridor
15,400
22,600
22,100
32,100
92,200
Other (small jobs)
Various
—
6,700
—
—
6,700
TOTALS
284,600
142,500
68,700
32,100
527,900
% of Total AR
53.9%
27.0%
13.0%
6.1%
100%
⚠ Energy Corridor Retail LP — 91+ Day Balance $32,100: Represents disputed backcharge for HVAC coordination delay. Client claims Lone Star caused 3-week delay in MEP rough-in. Our PM disputes this — documented daily logs provided to client. Legal letter sent January 28, 2026. CFO to coordinate with attorney. Target resolution by February 15. If uncollected by March 31, consider lien filing per Texas Mechanics’ Lien statute (Chapter 53, Texas Property Code).
Retainage Receivable Schedule — 10% held by clients
Client
Retainage Held
Est. Release
Westchase Medical Partners
140,000
Jun 2026 est.
Four Seasons Hotel Group
82,000
Sep 2026 est.
Midtown Office LP
92,500
Mar 2026 est.
River Oaks Legal LLC
28,000
Aug 2026 est.
Energy Corridor Retail LP
44,700
Feb 2026 est.
TOTAL RETAINAGE
387,200
AR Summary · Collection Priority
Current AR (excl. retainage)$527,900
Retainage receivable$387,200
TOTAL AR (all-in)$915,100
61+ days (excl. retainage)$100,800
DSO estimate (current AR only)~25 days
Midtown Office retainage $92,500 due March 2026 on substantial completion — monitor punch-list completion to accelerate release.
Total AR $915,100 (incl. retainage $387,200). 91+ day dispute $32,100 on Energy Corridor — legal letter sent Jan 28. Midtown retainage $92,500 expected Mar 2026 on completion.Page 8 of 12
BLACKPEAKCFO™ | FRACTIONAL CONTROLLER SERVICESLONE STAR COMMERCIAL CONTRACTORS LLC · JANUARY 2026CONFIDENTIAL MANAGEMENT PACK
AP / SubsAccounts Payable & Subcontractor Aging — January 31, 2026Standard payment terms: Net-30 · 61+ days requires CFO approval to hold · Excl. retainage withheld
Vendor / Sub
Type
Current 0–30
31–60 Days
61–90 Days
91+ Days
Total AP
Gulf Coast Steel Supply
Materials
48,200
22,400
—
—
70,600
Texas MEP Solutions
Subcontractor
32,400
18,600
—
—
51,000
Houston Electrical Group
Subcontractor
28,800
14,200
8,400
—
51,400
Southwest Concrete
Subcontractor
18,200
—
—
—
18,200
ProTech Equipment Rentals
Equipment
8,400
—
—
—
8,400
Various Suppliers
Materials
12,400
1,500
14,400
8,600
36,900
TOTALS
148,400
56,700
22,800
8,600
236,500
% of Total AP
62.7%
24.0%
9.6%
3.6%
100%
⚠ Various Suppliers — 61+ Day Review Required: $23,000 in balances 61+ days requires CFO approval to continue holding. Controller to identify specific invoices and confirm whether (a) disputed, (b) goods not received, or (c) cash flow hold. CFO sign-off required by February 10, 2026. Our standard payment terms are Net-30 — exceeding this without approval risks subcontractor disputes.
AP Summary
Total AP (excl. retainage)$236,500
Retainage withheld from subs$144,800
TOTAL AP (all-in)$381,300
61+ days requiring CFO review$31,400
Retainage withheld from subs ($144,800) is released to subs upon our receipt from the client. Timing follows client retainage release schedule (see P8).
Retainage Withheld from Subcontractors
Subcontractor
Withheld
Release Trigger
Texas MEP Solutions
42,800
On client release
Houston Electrical Group
38,400
On client release
Southwest Concrete
28,200
On client release
Other Subs (4)
35,400
On client release
TOTAL WITHHELD
144,800
Sub retainage is a flow-through: we release to subs within 30 days of receiving our retainage from the client. All subcontractor certificates of insurance on file (3 up for renewal Feb 2026 — see P12 actions).
AP total $236,500 (excl. retainage). 61+ days $31,400 requires CFO review by Feb 10. Sub retainage withheld $144,800 — released to subs on receipt from clients. Net-30 policy standard.Page 9 of 12
BLACKPEAKCFO™ | FRACTIONAL CONTROLLER SERVICESLONE STAR COMMERCIAL CONTRACTORS LLC · JANUARY 2026CONFIDENTIAL MANAGEMENT PACK
BacklogBacklog & Project Pipeline — January 31, 2026Remaining revenue by job plus weighted bid pipeline · Houston MSA focus
Job
Original Contract
% Complete
Remaining Revenue
Est. Completion
Proj. Margin %
Westchase Medical Center
2,340,000
52%
1,123,200
Jun 2026
22.8%
Downtown Hotel Phase 2
1,640,000
41%
967,600
Sep 2026
18.4% ⚠
River Oaks Law Firm
1,120,000
23%
862,400
Aug 2026
21.5%
Galleria Corporate HQ
2,200,000
8%
2,024,000
Dec 2026
23.0%
Midtown Office Suite
1,850,000
78%
407,000
Mar 2026
20.8%
Energy Corridor Retail
890,000
94%
53,400
Feb 2026
19.2%
TOTAL BACKLOG
10,040,000
—
5,437,600
Bid Pipeline — Outstanding Proposals
Project
Bid Value
Prob.
Wtd Value
Award
Katy Fwy Office Park Ph.2
1,840,000
65%
1,196,000
Feb 2026
Memorial Dr Dental Group
420,000
80%
336,000
Mar 2026
Pearland Retail Center
680,000
40%
272,000
Apr 2026
Sugar Land Corp Campus
2,100,000
35%
735,000
May 2026
WEIGHTED PIPELINE
5,040,000
~52%
2,539,000
📋 Pipeline Commentary: Memorial Drive Dental Group (80% probability, Mar award) — strong referral from Westchase Medical client — confirm bonding and insurance requirements. Katy Freeway Phase 2 (65%, Feb) — repeat client, good margin history. Sugar Land Campus ($2.1M) would require bonding capacity review — consult surety broker before bid submission (see P12 strategic item). Dallas/Fort Worth expansion: 2 active DFW bids under consideration — shared PM presence may be warranted if both awarded.
💵 Backlog Coverage: $5.44M backlog at ~22% blended margin = ~$1.2M projected gross profit from existing jobs. Energy Corridor Retail wraps in Feb 2026 — capacity opens for new work. Galleria HQ ($2.0M remaining, Dec 2026) provides strong H2 2026 revenue base. Target: maintain $5M+ backlog throughout 2026 with pipeline wins.
Total backlog $5,437,600 across 6 active jobs. Weighted pipeline $2,539,000 from 4 outstanding bids. Galleria HQ provides $2.0M H2 2026 revenue base. DFW expansion under consideration.Page 10 of 12
BLACKPEAKCFO™ | FRACTIONAL CONTROLLER SERVICESLONE STAR COMMERCIAL CONTRACTORS LLC · JANUARY 2026CONFIDENTIAL MANAGEMENT PACK
VarianceBudget vs. Actual — January 2026vs. FY2026 Annual Operating Budget (approved November 2025) · YTD = January (Month 1)
Downtown Hotel site access delays caused overtime on 3 weekends (+$9,400). Additional supervision added Feb 3. Mitigation plan in place.
Materials & Supplies
187,200
178,000
(9,200)
-5.2%
187,200
178,000
AMBER
Steel prices +4.2% vs Q4 2025 quote (Westchase -$15,400 unf). Two alternate suppliers approved Jan 2026. Expected normalization from Feb.
Subcontractors
98,400
94,000
(4,400)
-4.7%
98,400
94,000
GREEN
Texas MEP negotiated 6.6% better pricing on Westchase MEP scope (+$45K fav). Offset partially by Hotel Phase 2 scope. Net favorable overall.
Equipment Rental
24,100
23,000
(1,100)
-4.8%
24,100
23,000
AMBER
Downtown Hotel crane extension ($6,400 unf) offset by better rates elsewhere. Fleet utilization review recommended (see P12 strategic).
Other Direct Costs
13,600
12,000
(1,600)
-13.3%
13,600
12,000
AMBER
Permit fees on River Oaks Law Firm slightly higher than estimated ($1,200 unf). One-off — no recurrence expected.
GROSS PROFIT
132,300
114,000
+18,300
+16.1%
132,300
114,000
GREEN
GP $18.3K ahead. Margin 21.2% vs 19.7% budget — revenue beat more than offset COGS overruns.
G&A Expenses
Overhead Salaries
62,400
62,400
0
—
62,400
62,400
GREEN
All 12 management/admin staff fully employed. No changes. Fully on budget.
All Other G&A
25,000
25,000
0
—
25,000
25,000
GREEN
Rent, insurance, vehicles all on budget. No G&A line items exceeded in January.
NET INCOME
41,300
23,000
+18,300
+79.6%
41,300
23,000
GREEN
Strong January result. Revenue beat of $44K drove entire NI outperformance. COGS overruns ($25.7K) absorbed by revenue upside. G&A fully on budget.
Net Income $41,300 (+79.6% vs budget). Revenue beat $44K absorbed all COGS overruns. G&A on budget across all categories. YTD = January (Month 1 of 12). TX Franchise Tax accrued monthly.Page 11 of 12
BLACKPEAKCFO™ | FRACTIONAL CONTROLLER SERVICESLONE STAR COMMERCIAL CONTRACTORS LLC · JANUARY 2026CONFIDENTIAL MANAGEMENT PACK
ActionsWhat to Do Next — CFO Actions & 90-Day PlanImmediate priorities · 30-day actions · Strategic initiatives · Texas compliance
⚡ Immediate (This Week)
HIGHIssue Galleria HQ First Invoice
$176,000 earned, $0 billed. Galleria Development Co is the client. Progress invoice #001 must be submitted by February 28 or cash flow impact materialises. Owner: Billing Manager. Confirm AIA G702 Application for Payment format per contract.
Due: Feb 28, 2026 · Owner: Billing Manager
HIGHResolve Energy Corridor Dispute
$32,100 disputed backcharge (91+ days). Legal letter sent Jan 28. CFO + Attorney to coordinate response. If no resolution by March 31, file Texas Mechanics’ Lien (Chapter 53, TX Property Code). Document daily logs are complete and provided to client.
Due: Feb 15, 2026 · Owner: CFO + Attorney
MEDDowntown Hotel Cost Review
Labor at 109.7% and equipment at 120% of budget. PM to present labor scheduling plan and equipment utilization audit. Target: reduce overruns to within 5% of budget by March. Additional supervision added Feb 3 — monitor weekly.
Due: Mar 1, 2026 · Owner: Project Manager
📅 30-Day Actions
MEDTexas Franchise Tax Estimate
Verify annual report due date (May 15, 2026). Prepare initial FY2026 franchise tax estimate based on YTD revenue. LLC entity — Texas no-tax-due threshold is $2.65M (2026). If revenue below threshold, only Public Information Report required. BlackpeakCFO to confirm.
Due: Mar 15, 2026 · Owner: CFO
MEDSub Insurance Certificate Renewals
3 subcontractors have certificates expiring February 2026: Texas MEP Solutions, Southwest Concrete, and one electrical sub. Risk/Admin to obtain renewed COIs before payment of next draw. Do not release retainage without current certificate on file. Standard require $1M GL + $500K Workers Comp.
Due: Feb 28, 2026 · Owner: Risk / Admin
LOEquipment Depreciation Schedule
Q4 2025 equipment purchases not yet added to fixed asset / depreciation schedule. Controller to update GAAP schedule and confirm Section 179 election status for FY2025 tax return. Also confirm: service van purchased January 2026 ($22K) — classify correctly and begin depreciation.
Due: Mar 31, 2026 · Owner: Controller
📊 Strategic (90 Days)
Equipment Fleet Utilization Review
3 pieces of equipment idle 60+ days (excavator, scissor lift, compactor). Review lease vs. sell options. Equipment cost running over budget on Hotel job in part due to idle assets generating no revenue. Model: sell underutilized equipment, apply proceeds to reduce equipment loan balance.
Bonding Capacity Increase
Current single contract bond limit $10M. Galleria HQ ($2.2M) + Sugar Land Campus bid ($2.1M) = $4.3M concurrent. With Westchase ($2.3M) still active, approaching limit. Meet with surety broker before Sugar Land bid submission (May 2026). Target: increase to $15M single / $25M aggregate.
DFW Office Assessment
2 active DFW bids (Dallas/Fort Worth area). If both awarded, managing from Houston adds travel cost and PM oversight risk. CFO to model shared DFW PM presence cost vs. revenue benefit. Decision threshold: award 2+ DFW jobs totalling $3M+ triggers office/co-working space assessment.
Workers Comp Audit Preparation
Workers’ Compensation policy year ends April 2026. Begin premium audit preparation now: gather payroll by class code, sub certificates, and field hours logs. Houston construction market audit commonly flags misclassified workers — ensure all 30 field staff correctly classified. OSHA 300 log: 0 incidents YTD — excellent position.
Prepared by BlackpeakCFO · Fractional Controller & CFO Services · Houston, TX & Florida — Confidential — for management use only. — blackpeakcfo.com
Next report: February 2026 Management Accounts — due March 5, 2026. TX Franchise Tax filing due May 15, 2026 — BlackpeakCFO will prepare estimate by April 1.Page 12 of 12
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