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....

Prioritized Development and Improvements
Identifying all the opportunities for development of talent and improvement of the operation for a contractor is overwhelming at best. You can't "punch list" a business like you can a project. Prioritization and sequencing are crucial for success.
Teamwork - The Five Foundational Stages to Results
Construction is the most complex TEAM sport there is and the teams that work best together win. It is that simple. The contractors who know how to develop the best teams are thriving in all market conditions including the shortage of construction talent.
Building a Systems Development Team - Developers
A Software Developer is just one of the many roles that make up the systems development team.