Construction companies operate differently from most businesses because no project is the same. Therefore, improving cash flow requires intelligence & strategies.
Cash flow is an issue for the construction supply chain, and is a common reason for contractors and sub-contractors becoming insolvent. This can be catastrophic for a project in terms of time and money. The cash flow sets out when costs will be incurred and how much they will amount to during the life of the construction project. Predicting the cash flow is very important in order to ensure that an appropriate level of funding is in place and that suitable draw-down facilities are available. Cash flow is the lifeblood of any commercial construction project. Being able to effectively manage cash flows on projects and throughout the year can be the difference between the success and failure of your business.
With BUILDOMAX a construction company will have an opportunity to gain a general idea about what income and expenses should be expected in the future. Proper planning in anticipation of these events will help prevent payroll and payment problems.
Construction companies operate differently from most businesses because no project is the same. Therefore, improving cash flow requires intelligence & strategies. A lot will depend on the project manager’s ability to use technology to manage cash flow. That being the case, BUILDOMAX offer comprehensive cash flow management to a project manager. Apart from having the right project management tool, a construction company should do everything in its power to increase the speed of receivables, which will improve cash flow and avoid costly delays.
Subscribe to our Newsletter