Cash Flow Tip 14 - Aggressive Billings and Pre-Wiring the Process

A basic Schedule-of-Values (SOV) with flat billings and normal collection processes will yield about a 30% return on capital over the first 12 months of a project when looking at it from a cash basis.

D. Brown Management Profile Picture
Share

This is in the average-high range for contractors, depending on type.  

Cash Flow: Tip 14 Aggressive Billings - Pre-Wiring for Success. From a 12-month 31% return-on-capital at risk which is the high-average for contractors up to a 49% or greater return. Punch-as-You-Go Ensuring Maximum Monthly Billings Percentage of Completions “Sold” Ahead of Billing Change Order Approvals Contractually Required Support Documents Verified Early

Our focus is helping contractors achieve performance in the upper end of their peers, including cash flow. Look at the differences that aggressive management of every aspect of billings can make:

 


Cash Flow Tip 14 - Aggressive Billings and Pre-Wiring the Process
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....

Related Training
Cash Flow Tip 14 - Aggressive Billings and Pre-Wiring the Process
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....

Sundt and Growth of Wealth
One of the most common and dangerous misconceptions we hear about ownership in a construction company is that it’s all about the perks owners get. The biggest “perk” to being an owner of a construction company is the opportunity for a great investment.
Selecting and Managing People for a Job Role
A job role is a collection of related tasks and decisions to achieve a set of outcomes. A person brings a wide range of desires, skills, and experience to that job role. Aligning these is the discipline of management.
Work Observations and Time Studies (Basic Overview)
Work observations and time studies are related but distinctly different. Both are incredibly powerful tools for management, process improvement, and talent development. Starter resources and use cases below.