A Typical Project - Cash Flow S-Curve

Ensuring great financial outcomes is the ONLY way to build a sustainable construction business that can serve customers and develop team members over the long-term.

D. Brown Management Profile Picture
D. Brown Management
October 9, 2018 2 minute read
Share
Cash Flow: A Typical Project - Understanding Cash Flow

A project team has seven basic objectives and those tie into the contractor’s high-level scoreboard.

The basics:

This S-Curve chart shows just the cumulative cash flows in and out at the project level.  Overhead is excluded from this calculation for simplicity. The numbers are all based of the monthly data.

As you can see it is not until month 11 that the project becomes cash flow positive and that is without covering any overhead!  

Look at what happens when you factor in overhead

We are revamping our publicly available cash flow workshop that includes 18 techniques that contractors can use to accelerate cash flow. Stay informed of updates on release.

Can't Read the Label From Inside the Jar
By definition it is impossible for any of us to know what we don’t know. Who are the top 5 people inside your organization that help each other refine your models of projects, your company and the industry?
Related Article
Management Accountabilities: Two Foundational Basics
Managers have two basic foundational accountabilities. The first is delivering consistent outcomes given the inconsistencies of the inputs, people, and environment. The second is developing people at all levels into their fullest potential along the way.
Related Article
Contractor Exit Strategy 2 of 6: Pass Down to Family
Contractor Exit Strategy 2 of 6: Pass Down to Family. This is a very common strategy for contractors and is successful for those with interested family member(s) who are effectively working in leadership roles.
Related Article