As you will be aware, construction project cash flow relates to the incoming and outgoing funds in a business over time. More money flowing into the business than coming out is a ‘positive’ cash flow. If the opposite is true, the cash flow is ‘negative’. The trick is to secure a stable and positive cash flow to cover expenses and meet projected margins. In construction, everything happens fast and often at the same time. Therefore, good visibility helps you identify the best actions to overcome issues and protect your cash flow.
Let’s take a look at how you could protect and maintain a positive cashflow in the construction sector
Delivering successful projects on time and within budget requires keeping track of your cash flow and resources while gathering insights. Using more sophisticated and flexible technology is the way to achieve this. The time for change is now, and businesses should embrace such solutions if they want to combat the challenges of today and bounce back tomorrow.
What margin do you make per project, project lead, project type or discipline? These are essential questions to answer when it comes to making strategic decisions to secure a positive cash flow.
It is essential to have total visibility over your plant and equipment – its availability, costs, locations, bookings, billings, status and related resources – so that you can ensure optimal utilisation.
The UK construction industry is highly complex and often subject to significant risks due to the challenges that face the sector. Recent supply chain issues and increasing demand following the reopening of the economy mean the price of materials has risen and long lead times often mean that construction is one of the slowest-paying industries.
With these challenges in mind, it has never been more important to be able to control cash flow, boost growth and eliminate avoidable delays effectively. How can construction businesses make their processes more efficient through technology and ensure real-time visibility at any time and on any device?
Ensuring your business has a positive cash flow is essential for successful project delivery. To achieve it, you need real-time visibility across all key metrics at any point during a project to maintain your margins.
In this white paper, we take you through the most common obstacles to achieving a positive cash flow and the importance of recognising them before it is too late.
Anyone who has ever been involved in the construction industry understands the complexity of building and project delivery within fixed deadlines and budgets. Furthermore, there are always unexpected circumstances that present additional challenges in the planning and successful completion of a project.
In an industry with many moving parts, there are a number of challenges that construction business leaders face on a regular basis. They include inaccurate forecasting, poor resource planning, inefficient plant utilisation and the organisation and interpretation of data.
The construction industry has been reporting series of inefficiencies and appears to be suffering from consistently low productivity levels. Part of the reason is that construction is dealing with large scale complex projects with lots of resources and parties involved which are difficult to manage.
If your construction company does not keep a Risk and Opportunity Register, you may want to start one as soon as possible. All projects have associated risks; not recording them or keeping them in focus may result in unexpected costs, unrealised revenue or ineffective decision-making. These problems, which might be there at the outset or come about over time, are all likely to impact project profitability
Watch our on-demand ‘Risks and Opportunities’ webinar and see how you can ensure a more predictable and favourable outcome for your projects.
Based on the Microsoft Dynamics 365 Business Central platform, 4PS supports all your core processes including CRM, Estimating, dashboards, resource planning, plant, procurement, field service, graphical planning, mobile-enabled technology and more.
With each new release you automatically benefit from the latest technology and industry best practice. Thanks to many years of construction industry experience, 4PS has developed standard functionality to meet specific sector requirements. Take advantage of the single integrated solution ‘4PS Construct’ for all of your company processes.
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