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.

Giving and Receiving Feedback

Few things will enhance performance faster than deliberate practice, a rigorous feedback loop and enough cycles to build the competency. Here are the common challenges many people face.

Understanding the Construction Field Day

For a contractor to truly improve their field productivity, they must start with understanding how the time is spent. Depending on the trade, project, and the labor, study the time spent on actual installation ranges from 50-64%.

estimating field productivity

Impacted Productivity - Stacking of Trades and Installation Efficiency

Each craftsperson needs about 200 usable square feet for a productive installation. This assumption is included in production units used to estimate and budget projects. Having less than that can impact productivity up to 50%.

change management claims estimating field productivity