Managing Company and Project Cash Flow for Profitability
In the first part of our cash management series, we focused on how effective financial planning starts at the Pre-Bid and Bid phase. Today, we discuss the Contract Award Phase and the key areas of a contract that may adversely impact cash management further down the line.
TIP: Once a contract is awarded, a construction company should perform a more intensive review of the contract and engage in negotiations to obtain more favorable terms that facilitate desired cash flows.
Contract provisions to consider include: