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.

D. Brown Management Profile Picture
D. Brown Management
March 13, 2019 2 minute read
cash flow change management financial management foreman training project management
Share

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....
Previous Next Go To Series
Related Insights Series
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....
Previous Next Go To Series
Related Insights Series
Two Critical Things Every Business Must Do
The business of construction is both challenging and exciting, with days full of risks and rewards. Jack Stack calls it “The Great Game of Business,” where he describes how to create a culture of ownership.
Related Article
A Broader Definition of a Change on a Construction Project
The first step for contractors improving their management of changes on a project is simply earlier identification. This starts with a better definition of what a change really is, and then setting standards within your company around that definition.
Related Article
Degree of Discretionary Time with Growth in Role Levels and Business Size
The degree of discretionary time that someone has in doing their job grows with their role level - for example from crafts person to VP of Operations. For similar roles, that time decreases with company growth as the job roles become more tightly defined.
Related Article