A Typical Project - Cash Flow S-Curve

Ensuring great financial outcomes is the ONLY way to build a sustainable construction business that can serve customers and develop team members over the long-term.

D. Brown Management Profile Picture
D. Brown Management
October 9, 2018 2 minute read
Share
Cash Flow: A Typical Project - Understanding Cash Flow

A project team has seven basic objectives and those tie into the contractor’s high-level scoreboard.

The basics:

This S-Curve chart shows just the cumulative cash flows in and out at the project level.  Overhead is excluded from this calculation for simplicity. The numbers are all based of the monthly data.

As you can see it is not until month 11 that the project becomes cash flow positive and that is without covering any overhead!  

Look at what happens when you factor in overhead

We are revamping our publicly available cash flow workshop that includes 18 techniques that contractors can use to accelerate cash flow. Stay informed of updates on release.

This Series (4 of 44)
A Typical Project - Project Profitability and Understanding the Basics A Typical Project - Understanding the Basics of Cash Flow A Typical Project - Cash Flow S-Curve A Typical Project - Understanding Cash Flow at the Company Level Cash Flow Myth 1 - Profitability Does Not Equal Cash Flow
This Series (4 of 44)
A Typical Project - Project Profitability and Understanding the Basics A Typical Project - Understanding the Basics of Cash Flow A Typical Project - Cash Flow S-Curve A Typical Project - Understanding Cash Flow at the Company Level Cash Flow Myth 1 - Profitability Does Not Equal Cash Flow
More from D. Brown Management
Leadership and Management of Details
Building a great contracting business requires the right balance of leadership and management. While it is possible to separate them the truth is that many of the top leaders are relentlessly disciplined managers.
Related Article
The Leadership Vibrancy Curve
Leaders must navigate (1) the stages of contractor growth, (2) the phases of management team development, and (3) the arc of their own career and life. Maintaining the right levels of leadership vibrancy leads to sustainable scaling and succession.
Related Article
Thriving with a Difficult Manager
In the ideal situation, everyone would have a great manager - both internally and externally. In the real world, we will all have to work for someone we consider a difficult manager. Learn to thrive in these situations.
Related Article