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....

Leveraging Precon and CMAR for Sustainable Growth
Many contractors in many markets can use this three phase strategy to achieve sustainable growth by leveraging CM at Risk and Advanced Preconstruction Services to build a competitive advantage.
ABC Daily Planning
Effective planning processes are the foundation for great production. The planning process can be seen as a series of tighter and tighter concentric circles with the bullseye being the daily plan. Daily feedback improves performance and mitigates risk.
A Broader Definition of a Change on a Construction Project
The first step for contractors improving their management of changes on a project is simply earlier identification. This starts with a better definition of what a change really is, and then setting standards within your company around that definition.