Managing the Lifeblood of Contracting - Cash Flow
Cash flow is one of the most important issues facing contractors today. As the market continues to stay strong, companies are faced with starting new projects, hiring staff, and investing in assets to support the business. More companies go bankrupt due to cash flow issues than due to profitability. Many things can and should be done to improve cash management practices. We will explore a range of tools and techniques, from simple to complex, that allow firms to manage and control cash flow. Examples include contractual negotiation strategies, pricing and bidding practices, development of cost and resource-loaded schedules that tie to billing activities in the schedule of values, use of 12-week cash flow forecasts, project closeout procedures, and managing the billings and collection cycle. An interactive cash flow simulation provides hands-on experience that enhances the learning outcomes. Attendees to include project administrators, project engineers, project managers, project executives, group/branch executives, financial managers, owners
Learning Objectives:
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Learn the importance of cash management practices
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Increase profits with billings and collections
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Apply tools and techniques that optimize cash flow
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Maximize cash flow with process standardization
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Create transparency and accountability with measurement
Inequitable Payment Practices
Specialty contractors are expected to manage many forms of risk; some of which is inherent to the trade. Other forms of risk, such as payment practices that result in carrying the cost of capital for 30-60-90 days, have a significant impact on your ability to remain financially solid and/or acquire new work. This presentation quantifies the impact of slow payment and identifies mitigation strategies to address inequitable payment practices and protect the interests of specialty contractors.
This program is based on the research report Addressing Inequitable Payment Practices funded by ELECTRI International.
Following this course, participants will be able to:
• Explain quantification of the impact of inequitable payment practices
• List specific, tangible things specialty contractors can do to improve payment cycles
• Discuss the theory of surrounding contract language and enforceability
• Negotiate points with general contractors and owners
• Identify legislative talking points