Cash Flow Tip 6 - Build Relationships

It is important to build relationships at all levels.

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Cash Flow: Tip 6 Build Relationships at All Levels

It will happen in the future but as of today there isn’t a “Computer” or “Process” that is negotiating your contract with you, approving your Schedule-of-Values (SOV), approving your progress billing or ensuring that it works through the customer’s system until payment is made.

These are all things that are done by people and it is the relationships with those people that will accelerate the process.  

The best example of this is a contractor doing a bunch of work for telecommunications companies; many who went bankrupt around 2001-2002.  

  • The Project Manager and their management at the contractor all built deep relationships with Inspectors, Construction Managers and even their Accounts Payable teams for construction.  
  • This resulted in some early warning signals to the contractor’s team about “Major Problems” coming. 
  • Progress billing and payment processes that normally took 6-8 weeks got accelerated to days because of these relationships. 

Remember that relationships at all levels matter.  

Remember that multiple relationships from your company to the same person and company create even more strength.  

Remember to Never Eat Alone.


Cash Flow Tip 6 - Build Relationships
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 6 - Build Relationships
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....

Trends in Project Delivery and Technology
There are two major interrelated trends in the construction industry that are changing the way projects are delivered.
Project Delivery - CM Agency or Multi-Prime
Project Owners can minimize the markups for overhead and profit by contracting directly with the specialty contractors and hiring a Construction Management (CM) firm to work as their agent. This project delivery method is called CM Agency or Multi-Prime.
Doing Something is Worth a Lot
All things must be thought about before they can be built. For more complex ideas they must be talked about with a team to align everyone. Those are both critical prerequisites however without the act of actually doing something they are 100% waste.