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How to Avoid Running Out of Cash on a Construction Project

Levelset

Bigger projects require more materials and more labor, which means higher cash requirements. Contractors can take on more work than their cash flow will let them perform, leaving them scrambling for cash to pay their bills or their employees. But what about cash flow? Poor planning. Stuff happens.

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Why Banks Won't Lend Money To Your Construction Business

Contractor Bookkeeping

Small construction business owners must be adequately prepared to meet with a lender to present their business in the best possible light and ready for the money they need.

Banking 108
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The most important construction KPIs to improve profits and productivity

Lets Build

Investing in quality means you have to make fewer changes during the project—it saves time, it saves money, it saves headaches. No one wants a project full of change orders and rework. Start tracking performance metrics like: Labour waste Revenue per hour Material waste Equipment downtime 4.

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The High Cost of Low Bids: When Contractors Compete on Price, Everyone Loses

Levelset

And any savings on paper are usually lost mid-way through the project in change orders. Change orders inevitably increase costs , and schedule delays eat into the project’s budget. Low Bidding Impacts Contractor Cash Flow. That disrupts your project’s, and your organization’s, cash flow.

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The most important construction KPIs to improve profits and productivity

Lets Build

Investing in quality means you have to make fewer changes during the project—it saves time, it saves money, it saves headaches. No one wants a project full of change orders and rework. Start tracking performance metrics like: Labour waste Revenue per hour Material waste Equipment downtime 4.

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Five Tips To Help Contractors Stop Losing Money On Change Orders

Contractor Bookkeeping

Part of the root cause can be traced to a mild case of "Stockholm Syndrome" where contractors feel their cash flow may be held captive by their customers or clients. In this case the "Hammer" is a change order. Change orders are the "Hammer" and if you have a signed change order you have the hammer.

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Contractor Stops Money Leaks Using Our Free Change Order Video

Contractor Bookkeeping

Construction Change Order Video. This video shows you step by step the Fast Easy Accounting way to work with your Free Construction Change Order Form. Recap: He found the same thing most contractors have learned about how “Change Orders” become favors! The 80 20 Rule.