Cash Flow Tip 12 - Rapid Close-Out = Good Cash Flow

If you effectively manage the startup and the close-out of the project, then the execution in-between mostly takes care of itself.

D. Brown Management Profile Picture
Share

Effective project startup includes getting the contractual details, planning, and the Schedule-of-Values right.  

Cash Flow: Tip 12 Effective Close-Out - Getting Off the Job and Paid

There is a standing joke about the last 10% of a construction project costing 20%. It only causes so much uncomfortable laughter because it happens so often. Effective close-out includes:

  • Start with a detailed log of ALL deliverables required at the submittal stage before installation starts and the close-out stage, including warranties, testing certs, etc. 
  • Keep your change orders tightly managed throughout the project, reviewing progress weekly and escalating problems where appropriate.
  • Do your own punch list walk of the project each week to identify little details that can be buttoned up BEFORE the inspector, engineer, architect, or your customer catches them. Integrate these into the "C-Level" tasks in your ABC Daily Planning
  • Start working on your close-out deliverables as soon as you can. Manage those items as rigorously as you manage your submittals during startup.  
  • Start having weekly demobilization planning meetings when you are within 6 weeks of completion to review every aspect of getting off the job efficiently.  

Cash Flow
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

Cash Flow
Great cash flow is a key driver of valuation and successful successions. Running out of cash is is the #1 reason contractors fail. Improving cash flow improves your Return on Equity. Protect yourself and never let cash flow be the limitation to your profitable growth....

Seven Basic Project Team Objectives
Every construction project team has seven basic objectives. Expand on these to build great evaluation, development, and troubleshooting tools for your business.
Two Critical Things Every Business Must Do
The business of construction is both challenging and exciting, with days full of risks and rewards. Jack Stack calls it “The Great Game of Business,” where he describes how to create a culture of ownership.
COVID-19: The Only Easy Day was Yesterday
The Only Easy Day was Yesterday. About 15% of our clients are located in California, so last week was a great window into what it will likely look like for other states during the coming weeks.