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.

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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....

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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....

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Your precon team is your company from the perspective of the project owner. Put your best foot forward by selecting the right people in the right roles at the right stage of the project.
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For a contractor to be effectively involved in the early stages of a project beyond understanding the whole project development budget, they must also understand the financing and cash flow of the project.
Cash Flow Tip 13 - Projecting Cash Flow and Driving Awareness
Projecting Cash Flow drives awareness, learning, actions and, ultimately, improved cash flow.