Take the following steps to proactively boost your cash flow.
Plan for the Unexpected
Though it’s impossible to predict unexpected events, having potential solutions in place as a safeguard could help cushion their financial impact.
Contract provisions around unforeseen events should be considered during the drafting phase.
Enhance Organization-Wide Communication
Many aspects related to cash flow management in construction are dependent on a project’s operations, but operation and financial components of a company are often segregated.
Open lines of communication and strong working relationships between finance and operations teams are important to keep them in step and prepared for the unexpected.
Effective communication of job progress on the operations side can help identify potential cash drains, or to ensure that jobs can be billed appropriately.
This may require assessing company functions from a comprehensive perspective to fix any issues and maintain a strong operational culture.