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....

Levels of the Value Stream
For contractors to unlock maximum value during business development, preconstruction and project execution it is critical to understand the broader value stream of the project beyond their scope. 10 levels of granularity in the construction value stream:
The Sales Funnel (Scope and Key Roles Involved)
Each stage of the sales funnel requires different work to be completed and involvement from different key job roles. These evolve over time with growth and changing markets.
Prioritized Development and Improvements
Identifying all the opportunities for development of talent and improvement of the operation for a contractor is overwhelming at best. You can't "punch list" a business like you can a project. Prioritization and sequencing are crucial for success.