Cash Flow Tip 14 - Aggressive Billings and Pre-Wiring the Process

A basic Schedule-of-Values (SOV) with flat billings and normal collection processes will yield about a 30% return on capital over the first 12 months of a project when looking at it from a cash basis.

D. Brown Management Profile Picture
Share

This is in the average-high range for contractors, depending on type.  

Cash Flow: Tip 14 Aggressive Billings - Pre-Wiring for Success. From a 12-month 31% return-on-capital at risk which is the high-average for contractors up to a 49% or greater return. Punch-as-You-Go Ensuring Maximum Monthly Billings Percentage of Completions “Sold” Ahead of Billing Change Order Approvals Contractually Required Support Documents Verified Early

Our focus is helping contractors achieve performance in the upper end of their peers, including cash flow. Look at the differences that aggressive management of every aspect of billings can make:

 


Cash Flow Tip 14 - Aggressive Billings and Pre-Wiring the Process
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....

Related Training
Cash Flow Tip 14 - Aggressive Billings and Pre-Wiring the Process
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....

Different Stages of Market Growth and the Types of People Required
Every contractor will experience different stages of growth as a company and within the markets they are competing in. Understanding the different types of people required at each stage will help the contractor navigate them smoother.
Measure What Matters - OKRs
John Doerr just released a new book on the use of Objectives and Key Results (OKRs) to grow organizations. This is a phenomenal tool and can be used to align contractors vertically as well as horizontally.
Construction Benchmarks, Trends, Forecasts, and Predictions
Two of the most highly leveraged choices that leaders of contractors make are about market strategy and major resource allocations. Robust information systems about the external market are a critical part of this decision-making process.