Cash Flow Tip 15 - Contractual Compliance

Compliance with Contractual Requirements to Avoid Getting Your Payments Held.

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Each contract, including the specifications, will have specific requirements for what you need to do each billing cycle to get paid. These may include:

Cash Flow: Tip 15 Contractual Compliance - Don't Get Payments Held
  • Billing forms or electronic processing systems, such as Textura
  • Notarization of billings
  • Certified payroll
  • Lien releases
  • Other backup for the billing, including invoices if it is a T&M or GMP project

You will need these documents from your company and likely from your subcontractors and key vendors. Make sure that you have the requirements for all these in their terms and conditions. 

Build relationships with everyone, including outside auditors, in the workflow who is responsible for reviewing and approving your billings for contractual compliance.   

If you aggressively bill and get approvals for the progress billing amounts, then this contract compliance backup is the last thing that can hold up getting paid.  


Cash Flow Tip 15 - Contractual Compliance
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 15 - Contractual Compliance
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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