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

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:


Related Training
More from D. Brown Management
Leadership and Management of Details
Building a great contracting business requires the right balance of leadership and management. While it is possible to separate them the truth is that many of the top leaders are relentlessly disciplined managers.
The Leadership Vibrancy Curve
Leaders must navigate (1) the stages of contractor growth, (2) the phases of management team development, and (3) the arc of their own career and life. Maintaining the right levels of leadership vibrancy leads to sustainable scaling and succession.
Thriving with a Difficult Manager
In the ideal situation, everyone would have a great manager - both internally and externally. In the real world, we will all have to work for someone we consider a difficult manager. Learn to thrive in these situations.