D. Brown Management - Scoreboard

Scoreboard - Cash Flow Metric

The biggest cash flow variable for a contractor is their projects.

D. Brown Management

February 19, 2019 1 minute read

Cash flow is a critical scoreboard metric for contractors.

Scoreboard: Project Cash Metrics for Work-In-Progress (WIP)

While there are other factors that can impact cash flow at the company level, such as debt service or lack of overall company profitability, the metric track is still typically at the project level.

This simple metric lets you know if you are either:

Financing the projects to some degree if the score is less than 1, or
In a positive cash flow position if the score is greater than 1

This metric is explained in more detail here.

Where is your current cash flow?
Where has it been trending?

18 tips for improving your cash flow.

Fail 9 Times to Succeed

Fail nine times in order to succeed. The ability to accept failure as part of the learning process is just one of the great insights from: The Five Elements of Effective Thinking

Alignment and Ownership and Creating Value

As a construction company grows, it becomes increasingly important to align everyone on the team. Alignment comes from being transparent with your guiding principles or values and living them every day, starting with ownership.

Project Delivery - CM Agency or Multi-Prime

Project Owners can minimize the markups for overhead and profit by contracting directly with the specialty contractors and hiring a Construction Management (CM) firm to work as their agent. This project delivery method is called CM Agency or Multi-Prime.