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7 Things Contractors Need to Know About Retainage

Fieldwire

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.

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How To Negotiate A Higher Credit Limit With Your Building Material Supplier

Levelset

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.

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8 Tips to Manage Cash Flow Like Your Construction Business Depends on It

Autodesk Construction Cloud

Cash flow can make or break any business, especially in the construction industry. To successfully grow, construction firms need to effectively manage cash flow to procure materials, pay vendors and salaries, fund new projects, and finance other day-to-day business operations. Choose projects with profitable estimates.

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What is Retainage in Construction?

Lets Build

Almost every construction professional faces the same problem – cash flow. Large upfront costs and long waiting periods between payments are a normal occurrence; retainage adds to this cash flow problem for contractors and project managers. Retainage percentages and negotiations.

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Accounting for Retention Receivable & Payable: A Contractor’s Guide

Levelset

The rate of retention is stipulated in the construction contract and can often be negotiated. 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.

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Contractors We Help To Succeed

Contractor Bookkeeping

You need to know which jobs are most profitable and how to get more of them. to the bottom line profit. in profit keeps coming in that it could add hundreds or even thousands of dollars to your cash flow and profits and may be the difference between earning a profit and losing money.

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Which Contractors We Help To Succeed

Contractor Bookkeeping

You need to know which jobs are most profitable and how to get more of them. to the bottom line profit. in profit keeps coming in that it could add hundreds or even thousands of dollars to your cash flow and profits and may be the difference between earning a profit and losing money.