18 Details That Make a Huge Difference in Cash Flow

Improving cash flow substantially enables sustainable growth.

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There are 18 tactics contractors can use to improve cash flow at the project and the company level. Capital is one of the 3 basic constraints for any contracting business so continuous improvement of every process related to cash flow enables sustainable growth.

Cash Flow: 18 Details that Make a Huge Difference.
  • Just like improving field productivity there is no single tactic that will make cash flow good forever.  It is important to use the lean principle of Kaizen building a culture, operating rhythms and processes around incrementally improving every detail.
  • Not every tactic will work on every project or with every contractor but taken together these 18 tactics are guaranteed to significantly improve your cash flow.  
  • While the executives and the finance team play a big part in cash flow the majority of the tactics are within the control of the project team and are the direct responsibility of the Project Manager.

We are revamping our publicly available cash flow workshop that includes these 18 tactics that contractors can use to accelerate cash flow. Stay informed of updates on release. 


18 Details That Make a Huge Difference in Cash Flow
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

18 Details That Make a Huge Difference in Cash Flow
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

Increased Value by Lowering Variability
A construction business is capable of providing a very high return to the owners who have their capital at risk as well as the team members that work there. Contractors with lower variability in profitability are both more valuable and more sustainable.
Cash Flow Tip 6 - Build Relationships
Build Relationships at All Levels. There isn’t a “Computer” that is negotiating your contract with you, approving your Schedule-of-Values, approving your billing or ensuring timely payment for you. It is the people.
Four Levels of Integration and Optimization
Operational excellence must be a major component of every contractor’s strategy and baked into their daily behaviors. Optimizing at each of the four major layers requires different levels of thinking, technology, and time span.