Cash Flow Lien Profitability Risk 
Fieldwire
AUGUST 14, 2023
Construction is one of the hardest industries to manage cash flow in, with contractors often facing large up-front costs and frequent, long delays between expenses and payment. Retainage can cause a cash flow burden for contractors, especially subs at the bottom of the payment chain.
Autodesk Construction Cloud
FEBRUARY 1, 2024
Despite this, both general contractors and subcontractors struggle with the complexities of the payment process and face significant cash flow obstacles. Time and time again, I hear about contractors’ frustrations and struggles with late payments and cash flow and how it negatively impacts their businesses.
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Levelset
MAY 2, 2022
Contractors trying to grow their business and take on larger projects often struggle to manage their cash flow to purchase the materials they need. Many contractors use trade credit to delay paying for materials and keep more cash in their pockets. These references give suppliers a historical context to assess their risk.
Levelset
AUGUST 16, 2022
However, larger projects come with greater risks and additional challenges. Some contractors watch as their gross profit margins decrease when they take on larger jobs. Knowing the risk factors that bonding companies consider might help you better evaluate whether a large project you are looking at is a good opportunity.
Levelset
APRIL 1, 2022
Luckily, there are insurance policies that will replace the cost of the stolen goods, such as builders risk insurance. If the contractor is afraid of a premium hike that will cut into profits month after month, they might just pay for the item out of pocket. Restricted cash flow. Impact of construction site theft.
Levelset
JUNE 6, 2022
It can significantly impact the financial standing of contractors, especially when working on projects with a small profit margin. Because retention is often held for a long period of time, it can create cash flow problems for contractors. Contractors must weigh whether to use a mechanics lien to protect their payment rights.
Levelset
APRIL 28, 2022
While general contractors commonly use performance bonds to reduce the risk of default, a bond ultimately protects the property owner, not the GC. In addition, SubGuard does not provide protection against mechanics liens from unpaid second-tier subs and suppliers. Include X amount of additional profit in your bid.”.
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