Managing Cash Flow on Construction Projects

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IMPORTANT CASH RELATED TRENDS• Trends are importanto Signs of trouble• Decreasing cash• Increasing AR and under billings• Use of cash for long term assets, loans to related parties• Maximized short term borrowings6
CASH FUELS GROWTH• <strong>Cash</strong> is required to finance operating activitiesand provides security in difficult timeso How much cash is needed for new work?• Finance of job start up, current work• New equipment• How will growth impact debt covenants & suretyrelationships?– Unrealistic Growth #1 reason for surety claims7
Page 1 and 2: Managing C
Page 3 and 4: DISCUSSION OUTLINE• Accounting pe
Page 5: KEY CASH RELATED RATIOS• Most imp
Page 9 and 10: IMPROVING CASH FLOWHow do President
Page 11 and 12: IMPROVING CASH FLOWSHow do estimato
Page 13: IMPROVING CASH FLOWSuperintendents
Page 16 and 17: STATEMENT OF CASH FLOWSCASH FLOWS F
Page 18 and 19: Cash is King
Page 21 and 22: Liquidity or Short-Term Solvency ra
Page 23 and 24: The Dynamics• How much money will
Page 25 and 26: Know Your Customer• Do they pay s
Page 27 and 28: The Schedule• The schedule drives
Page 29 and 30: Change Orders - Are you kidding you
Page 31 and 32: Financial Statements• CPA that sp
Page 33 and 34: Interruptions to Cash</stro

Managing Cash Flow on Construction Projects

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