Project Cash Metric for Work-in-Progress (WIP)

Do your projects burn or build cash? The biggest cash flow variable for a contractor is their projects.

D. Brown Management Profile Picture
D. Brown Management
February 19, 2019 1 minute read
cash flow
Share

Cash flow is a critical scoreboard metric for contractors.

Scoreboard: Project Cash Metrics for Work-In-Progress (WIP)

While there are other factors that can impact cash flow at the company level, such as debt service or lack of overall company profitability, the metric track is still typically at the project level.  

This simple metric lets you know if you are either:

  • Financing the projects to some degree if the score is less than 1, or
  • In a positive cash flow position if the score is greater than 1

This metric is explained in more detail here.

  • Where is your current cash flow?  
  • Where has it been trending?  

18 tips for improving your cash flow.

Related Training
Changes - Impacts Beyond the Direct Costs
Contractors don't typically see the full negative impact of changes and, therefore, don’t put the right level of resources into their management.
Related Article
Project Cash Metric for Work-in-Progress (WIP)
Do your projects burn or build cash? The biggest cash flow variable for a contractor is their projects. Cash flow is a critical scoreboard metric for contractors.
Related Article
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. A 30-day improvement to change management workflow can generate over $400K in additional cash flow for a $50M contractor.
Related Article