Scoreboard - Cash Flow Metric

The biggest cash flow variable for a contractor is their projects.

D. Brown Management Profile Picture
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.




From More Generalized to More Specialized with Growth
Job roles, tools, and equipment progressively get more specialized as projects and contractors grow. These changes must be balanced with versatility and talent development.
The Risks of Vision and Strong Leadership
The strongest leaders at all levels in construction have a clear vision of where they are headed and are relentlessly focused on achieving their goals. They align their teams tightly around the vision, goals, and strategy. This may introduce risks.
Plan Ahead, Adjust Early, and Accelerate Recovery
Construction in any given industry sector or geographical area is a cyclical business. There are four major levers a contractor can pull to ensure the business performs well throughout all economic cycles.