Project Income Projections

For a contractor to be effectively involved in the early stages of a project beyond understanding the whole project development budget.

D. Brown Management

January 26, 2019 2 minute read

They must also understand the financing and cash flow of the project.

CM at Risk: Invoice representing Income Projections.

Few things are more valuable for a contractor than having a portfolio of negotiated work with a select group of customers who develop multiple projects each year.

If those projects don’t get financed, they will never get built.
If those projects don’t provide cash flow and a return to the project owner, then their business model is not sustainable.

Both of these will have a negative impact on a contractor’s growth. Unfortunately, many contractors have gone out of business due to project financing from their customer not being solid.

The best contractors build strong relationships with cities, governments, banks, attorneys, investors, and others who can help make a project occur. This makes them exceptionally valuable in the early stages of project development and most of the time they will do the construction if they are the ones that materially helped put the deal together.

Do you compete at that level? Contact us to have a conversation.

This Series (14 of 19)

Conceptual Estimating - Turning Drawings Into Estimates Understand Buying Motivations Project Income Projections Weekly Design Meetings and Protecting Finishes Building an Effective Preconstruction Team