It may sound tedious, but cash flow is the most important part of your finances, and getting into the habit of taking it seriously will hold you in good stead.
Today’s video is about Construction Management Hacks that will massively impact cash flow and the success of your business. Watch the video by clicking here or continue with this quick read.
So the first lesson is:
Front and centre must always be that cash flow is king.
The second lesson is:
Structure your deals so that you have better cash flow.
Here are two ways to do this…
There’s Always an Opportunity to Submit an Alternative Bid.
Usually, this is from a technical POV- if you can see how to do something different or more efficiently you can submit your advice.
However, you can also do an alternative bid in terms of how you’re positioning the work differently.
Try to negotiate an upfront payment.
Explain why an upfront payment is beneficial.
So at the moment as everyone knows, people and materials are the biggest risk re. Any construction project.
- It’s hard to get good people
- It’s hard to get materials
With an upfront payment, you can lock in GOOD PEOPLE and GOOD MATERIALS
In exchange for prepayment, you will also give them a 5% discount on the total contract value.
The benefit to you is that you will have better cash flow plus you will almost always make up the 5% in the post-award phase.
When you get to the stage of being awarded a contract offer rates for changes and other services.
This will give you a better margin on the change order or variation.
We want you to be the MOST SUCCESSFUL you can possibly be. That’s why we put together content with tips and advice that is tried and tested.
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