Cash Flow Tip 12 - Rapid Close-Out = Good Cash Flow

If you effectively manage the startup and the close-out of the project, then the execution in-between mostly takes care of itself.

D. Brown Management Profile Picture
Share

Effective project startup includes getting the contractual details, planning, and the Schedule-of-Values right.  

Cash Flow: Tip 12 Effective Close-Out - Getting Off the Job and Paid

There is a standing joke about the last 10% of a construction project costing 20%. It only causes so much uncomfortable laughter because it happens so often. Effective close-out includes:

  • Start with a detailed log of ALL deliverables required at the submittal stage before installation starts and the close-out stage, including warranties, testing certs, etc. 
  • Keep your change orders tightly managed throughout the project, reviewing progress weekly and escalating problems where appropriate.
  • Do your own punch list walk of the project each week to identify little details that can be buttoned up BEFORE the inspector, engineer, architect, or your customer catches them. Integrate these into the "C-Level" tasks in your ABC Daily Planning
  • Start working on your close-out deliverables as soon as you can. Manage those items as rigorously as you manage your submittals during startup.  
  • Start having weekly demobilization planning meetings when you are within 6 weeks of completion to review every aspect of getting off the job efficiently.  

Cash Flow Tip 12 - Rapid Close-Out = Good 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....

Cash Flow Tip 12 - Rapid Close-Out = Good 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....

Fail 9 Times to Succeed
Fail nine times in order to succeed. The ability to accept failure as part of the learning process is just one of the great insights from: The Five Elements of Effective Thinking
Doing What You Don't Want to Do
It is natural for all of us to focus on our strengths and the things we love to do. Things we love to do are usually things that we are good at doing; our strengths. None of us were born with great business acumen or technical competency.
Taking 100 Percent of Responsibility
Imagine having 100% control over everything. It starts by assuming 100% responsibility for everything.