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.

Asking Good Questions

The ability to ask good questions will improve your learning, teaching, hiring, selling projects, building projects, and growing your contracting business. The discipline of formulating good questions often answers the original question and many more.

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Lean Principle - Stop Work (Until Problems Are Corrected)

All construction projects will run into some degree of problems. It is how the project team chooses to manage these problems that ultimately determines the outcome of the project.

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Integrating Metrics and Organizational Structure

Having a high-level scoreboard for a contractor is just the beginning. The much more valuable part is breaking these high-level scores down into specific and prioritized metrics at each level within each functional area of the organization.