Construction managers face significant cash flow challenges at the project and company level. Understanding these dynamics and how they impact financial stability of the company helps inform managerial decisions that lead to company investment and growth. This session will consider the most commonly used financial statement in the construction industry – the Work-In-Progress report. This powerful tool is used to monitor project performance and improve communication within the organization. This course also evaluates the cash flow benefits of trade discounts, early payment terms, and the ongoing debate of debt vs. equity financing. An in-depth analysis of some of the key performance metrics and industry-wide benchmarks will inform strategic decisions in how to improve project performance as well as company profitability. A better understanding of profitability promotes a desire to improve project performance. Project managers who are focused on profitability will apply methods taught in this course to capture the aggregate of multiple areas of improvement – leading to significant improvements.
