Cash Flow Tip 15 - Contractual Compliance

Compliance with Contractual Requirements to Avoid Getting Your Payments Held.

D. Brown Management Profile Picture
Share

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 both your own 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 in the workflow who is responsible for reviewing and approving your billings for contractual compliance not forgetting outside auditors.   

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
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....

Competencies vs. Confidence vs. Success
Sustainable growth comes when confidence is kept in alignment with the competencies required to effectively serve the customer.
4 Elements of Commander's Intent
Effectively execute your strategies across the whole organization while allowing your team the flexibility to adapt for the specific conditions they are facing.
A Prepared Mind, Body, and Home Creates a Strong Foundation
It will be impossible for people to fully focus on critical business issues if they aren’t solid in mind, body, and home. Career and business growth will always be stronger with a stable foundation.