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.

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Succession Fact #2: No exit strategy or deal structure will create desire, alignment, and competencies in the management team. With that said, it is incredibly important that the exit strategy and structure of the deal maintains and enhances the team.

Project Delivery - Design-Build

The Design-Build method of project delivery eliminates a couple of the major negatives inherent in the Design-Bid-Build method, integrating construction and design by putting the contractor fully in charge of the process.

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Strategic Market Choices for where a contractor chooses to play must be balanced between diverse enough, large enough, and focused enough. These are the highest-leveraged decisions that leaders of construction businesses make.

market strategy