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.

Leading Change Quote - Arthur Schopenhauer

If you see something that no one else sees you are either genius or crazy of some combination of the two. If what you see is so big that you can’t ignore it be prepared for a long journey through the process of change.

Growth and Opportunity

Contractors that are growing profitably, have great reputations with their customers, and have a good culture are able to attract and retain the best talent even with the talent shortages the construction industry will face in the next 10+ years.

Rubber Ducks for Planning and Troubleshooting Effectively

"If you can't explain it simply, you don't understand it well enough." - Albert Einstein Wisdom that is as applicable to physics as it is to being a Foreman, Project Manager, or Owner of a construction company.

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