Cash Flow Tip 14 - Aggressive Billings and Pre-Wiring the Process

A basic Schedule-of-Values (SOV) with flat billings and normal collection processes will yield about a 30% return on capital over the first 12 months of a project when looking at it from a cash basis.

D. Brown Management Profile Picture
Share

This is in the average-high range for contractors, depending on type.  

Cash Flow: Tip 14 Aggressive Billings - Pre-Wiring for Success. From a 12-month 31% return-on-capital at risk which is the high-average for contractors up to a 49% or greater return. Punch-as-You-Go Ensuring Maximum Monthly Billings Percentage of Completions “Sold” Ahead of Billing Change Order Approvals Contractually Required Support Documents Verified Early

Our focus is helping contractors achieve performance in the upper end of their peers, including cash flow. Look at the differences that aggressive management of every aspect of billings can make:

 


Cash Flow Tip 14 - Aggressive Billings and Pre-Wiring the Process
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....

Related Training
Cash Flow Tip 14 - Aggressive Billings and Pre-Wiring the Process
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 Tip 3 - Contractual Details Matter
The reason we are called contractors is because we work off of a contract that defines the scope and terms of what we build. How we negotiate and manage the contract determines cash flow.
Advanced Business Development for General Contractors
Finally, a resource designed specifically for Senior Management in the construction industry. This workshop will help explain the “Art and Science of Business Development” and what you can do to maximize the processes you already have.
Management Role Promotion Checklist (8 Steps)
Are you responsible for or involved in making the decisions about moving a person into a management role? Are you considering a move into a first-time, different, or higher-level management role? Use this 8-step checklist to help you evaluate.