Cash Flow Tip 15 - Contractual Compliance

Compliance with Contractual Requirements to Avoid Getting Your Payments Held.

D. Brown Management Profile Picture
Share

Each contract, including the specifications, will have specific requirements for what you need to do each billing cycle to get paid. These may include:

Cash Flow: Tip 15 Contractual Compliance - Don't Get Payments Held
  • Billing forms or electronic processing systems, such as Textura
  • Notarization of billings
  • Certified payroll
  • Lien releases
  • Other backup for the billing, including invoices if it is a T&M or GMP project

You will need these documents from your company and likely from your subcontractors and key vendors. Make sure that you have the requirements for all these in their terms and conditions. 

Build relationships with everyone, including outside auditors, in the workflow who is responsible for reviewing and approving your billings for contractual compliance.   

If you aggressively bill and get approvals for the progress billing amounts, then this contract compliance backup is the last thing that can hold up getting paid.  


Cash Flow Tip 15 - Contractual Compliance
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 15 - Contractual Compliance
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....

Key Drivers of Value
Valuation is a very critical factor during ownership transitions because it has to be a number that fairly represents the value of the business for the outgoing owners while providing a solid return for the buyers.
Bias for Action - Behavior That Matters
“Speed matters in business. Many decisions and actions are reversible and do not need extensive study. We value calculated risk taking.” - From Amazon Principles
The Big Lie of Strategic Planning
Strategy and planning are two very different things requiring two very different mindsets. Calling it “Strategic Planning” is the first place that can send teams down the wrong path.