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.

Headcount, Management Structure, and Systems

Your management structure and systems must be able to support your forecasted 2-month peak headcount, including the ramp-up to that peak.

growth management talent

5-Step Foreman Coaching Outline

Accelerating the development of foremen is one of the most critical things a contractor can do to improve project outcomes and mitigate the craft labor shortage. This 5-step outline will form the foundation of a great coaching program.

field productivity foreman training Organizational Development talent development Talent Value Stream (TVS)

Cash Flow Tip 12 - Rapid Close-Out = Good Cash Flow

If you effectively manage the startup and the close-out of the project, then the execution in-between mostly takes care of itself.