Construction Cash Management Series: Part Two – Contract Award

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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:

  • Timing of payments
  • Method of payments
  • Penalty provisions for not adhering to payment …read more

    Read more here:: Construction

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