A 30-day improvement to change management workflow can generate over $400K in additional cash flow for a $50M contractor.
- Construction projects average 10% in changes.
- Attention to details on pricing can significantly improve change profitability by accounting for many of the hidden impacts that changes cause.
- Nearly all projects face difficult cash flow, even before adding in changes.
- Getting changes onto the billings ASAP is critical. Remember that an improvement of just one billing cycle on average is worth hundreds of thousands of dollars in cash flow.
HOW? Look at every detail of the workflow.
- Could we have identified this any earlier?
- Could we have priced it and made a proposal any quicker?
- Could we have leveraged our customer relationships to get it processed any faster?
- How many of the T&M changes could we have quantified ahead of time to accelerate the process?
- Could our backup information be any clearer so that processing moves faster?
- Could our contractual terms have been improved to help?