Changes and Cash Flow Improvement

Construction is a cash-intensive business and change orders are often one of the root causes of poor cash flow.

D. Brown Management Profile Picture
Share

A 30-day improvement to change management workflow can generate over $400K in additional cash flow for a $50M contractor.  

Change Management: Changes, how much cash flow improvement?


HOW? Look at every detail of the workflow.  


  • Could we have identified this any earlier? 
     
  • Could we have priced it and made a proposal any quicker?  

  • Could we have leveraged our customer relationships to get it processed any faster? 
     
  • How many of the T&M changes could we have quantified ahead of time to accelerate the process?

  • Could our backup information be any clearer so that processing moves faster?

  • Could our contractual terms have been improved to help?  


Changes and Cash Flow Improvement
Change orders are a fact of life in construction. Improve profitability, cash flow and customer satisfaction by effectively managing changes. Build a foundation for success with 12 steps to improve pricing and 11 negotiating strategies for the whole project team....

Related Training
Changes and Cash Flow Improvement
Change orders are a fact of life in construction. Improve profitability, cash flow and customer satisfaction by effectively managing changes. Build a foundation for success with 12 steps to improve pricing and 11 negotiating strategies for the whole project team....

Project Actions Required (PAR)
Keep your project teams aligned and your projects on track with a shared Project Actions Required (PAR) list and workflow.
Job Instruction (JI): A 1940s Solution to the Craft Labor Shortage
The shortage of qualified craft labor, crew leaders, and supervisors has been solved before - just not in our lifetimes. The lessons from the Training Within Industry (TWI) and specifically the Job Instruction (JI) training can be used by any contractor.
Change Orders and Average Cost Impact to the Project (Industry Survey)
Changes are a part of the construction process with many underlying causes. While we have all heard the average of 10% changes on construction projects, it is interesting to look at an industry study for validation.