Scoreboard - Cash Flow Metric

The biggest cash flow variable for a contractor is their projects.

D. Brown Management

February 19, 2019 1 minute read

Cash flow is a critical scoreboard metric for contractors.

Scoreboard: Project Cash Metrics for Work-In-Progress (WIP)

While there are other factors that can impact cash flow at the company level, such as debt service or lack of overall company profitability, the metric track is still typically at the project level.

This simple metric lets you know if you are either:

Financing the projects to some degree if the score is less than 1, or
In a positive cash flow position if the score is greater than 1

This metric is explained in more detail here.

Where is your current cash flow?
Where has it been trending?

18 tips for improving your cash flow.

Succession Fact #3: Trust Between Parties

Succession Fact #3: No exit strategy or deal structure will work without trust between all major stakeholder groups. Whether it is a large and complex project or a business ownership transition, there will never be a “perfect” set of documents or plan.

Cash Flow Tip 2 - Winning and Building the Right Mix and Velocity of Projects

It seems obvious but the first thing you must do is consistently build projects that meet or exceed your budgeted profit expectations.

CFMA: Talent Pipelining

Contractors will face continually worsening talent shortages through 2030. Those that want to continue sustainable growth must manage every aspect of their talent management processes with extreme rigor.