Scoreboard - Cash Flow Metric

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

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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.




Customer Strategy Intersection
Having an effective market strategy is the #1 thing a contractor can do to ensure sustainable and profitable growth. For your strategy brainstorm the following and look for intersections:
A Typical Project - Project Profitability and Understanding the Basics
It is crucial for everyone in a construction company to understand the financial basics of a project. Contractors have razor-thin profits and relatively high risk.
Tracking Change Progress (The Funnel): Basic Status Categories
Managing changes effectively means that you need clear visibility across all projects. While the workflow will vary by project, the key progress milestones in your internal process will remain fixed.