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

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:

We are revamping our publicly available cash flow workshop that includes these 18 tactics 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....

Increased Value by Lowering Variability
A construction business is capable of providing a very high return to the owners who have their capital at risk as well as the team members that work there. Contractors with lower variability in profitability are both more valuable and more sustainable.
Integrating Metrics and Organizational Structure
Having a high-level scoreboard for a contractor is just the beginning. The much more valuable part is breaking these high-level scores down into specific and prioritized metrics at each level within each functional area of the organization.
Sharpening Your Thinking Through Writing
Contractors can learn many lessons from the leadership principles of Hyman G. Rickover who is considered the “Father of the Nuclear Navy” including safety, engineering, talent, management, schedules and quality control.