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.

D. Brown Management Profile Picture
Share

Effective project startup includes getting the contractual details, planning, and the Schedule-of-Values right.  

Cash Flow: Tip 12 Effective Close-Out - Getting Off the Job and Paid

There is a standing joke about the last 10% of a construction project costing 20%. It only causes so much uncomfortable laughter because it happens so often. Effective close-out includes:

  • Start with a detailed log of ALL deliverables required at the submittal stage before installation starts and the close-out stage, including warranties, testing certs, etc. 
  • Keep your change orders tightly managed throughout the project, reviewing progress weekly and escalating problems where appropriate.
  • Do your own punch list walk of the project each week to identify little details that can be buttoned up BEFORE the inspector, engineer, architect, or your customer catches them. Integrate these into the "C-Level" tasks in your ABC Daily Planning
  • Start working on your close-out deliverables as soon as you can. Manage those items as rigorously as you manage your submittals during startup.  
  • Start having weekly demobilization planning meetings when you are within 6 weeks of completion to review every aspect of getting off the job efficiently.  

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

Opportunity Pipeline Target Size: The Basic Math
The biggest leading indicator for performance of a contractor is the size, quality, and trajectory of their opportunity pipeline. There are lots of nuances and complexity to evaluating your pipeline, but it all starts with the principles and basic math.
3-Year Business Planning (Basic Overview)
Your 3-Year Business Plan is the equivalent of a Short-Interval-Plan (SIP) on a construction project. It sets specific objectives and key results for the whole team. It allows you to plan your resources and know if you are on track or not.
Construction Craft vs Management Training
Contractors who can effectively develop management talent will dominate during the next decade. We can learn a lot of lessons from how we develop craft labor versus how we develop a Superintendent or Project Manager or any other manager.