Changes and Cash Flow Improvement

Construction is a cash-intensive business and change orders are often one of the root causes of poor cash flow.

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A 30-day improvement to change management workflow can generate over $400K in additional cash flow for a $50M contractor.  

Change Management: Changes, how much cash flow improvement?


HOW? Look at every detail of the workflow.  


  • Could we have identified this any earlier? 
     
  • Could we have priced it and made a proposal any quicker?  

  • Could we have leveraged our customer relationships to get it processed any faster? 
     
  • How many of the T&M changes could we have quantified ahead of time to accelerate the process?

  • Could our backup information be any clearer so that processing moves faster?

  • Could our contractual terms have been improved to help?  


Changes and Cash Flow Improvement
Change orders are a fact of life in construction. Improve profitability, cash flow and customer satisfaction by effectively managing changes. Build a foundation for success with 12 steps to improve pricing and 11 negotiating strategies for the whole project team....

Related Training
Changes and Cash Flow Improvement
Change orders are a fact of life in construction. Improve profitability, cash flow and customer satisfaction by effectively managing changes. Build a foundation for success with 12 steps to improve pricing and 11 negotiating strategies for the whole project team....

Early Identification is a Process - Effectively Using Checklists
Few things will improve customer satisfaction, profitability, cash flow, risk, and team stress more than early identification of change orders. This is a process and a trainable skill. Checklists are some of the most valuable tools in that process.
Percent Planned Complete (PPC) - Calculation Example
Yoda would be the perfect coach for managing schedules on projects: “Do or do not. There is no try.” This is the heart of Percent Planned Complete (PPC) and the weekly cycle of continuous production improvement.
Changes - Problem or Fact?
If you perceive that changes are a problem in construction, then you are likely framing them as a point of blaming others. This framing will impact your ability to effectively manage changes.