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
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.


Cash Flow
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

Cash Flow
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

Leveraging Precon and CMAR for Sustainable Growth
Many contractors in many markets can use this three-phase strategy to achieve sustainable growth by leveraging CM at Risk and Advanced Preconstruction Services to build a competitive advantage.
Cash Flow Tip 4 - Delighting Your Customers
Delight Your Customers - Both Direct and Indirect. All other things being equal your cash flow will be better if your customer is delighted with the work you have done. They are more likely to:
Diffusion of Innovations Curve
The contractors that dominate tomorrow’s market will be those that have built strong capabilities for identifying opportunities or problems then rapidly making lasting changes throughout the organization.