Cash Flow Best Practices to Help Subcontractors
In a robust market, cash shortfalls can sneak up on you. These best practices can help subcontractors enhance their cash flow in a growing and competitive construction market and proactively identify and manage potential shortfalls. Here’s an excerpt from the article:
“Subcontractors can be the most sensitive to changes in the market or on a specific job because they’re furthest away from the payment cycle. However, there are multiple areas subcontractors should address to help improve their cash flow such as a robust forecasting model, understanding the payment terms of the contract and the parties involved, identifying KPIs relevant to cash management, and leveraging your existing relationships.”
BKD is a Principal Partner of the Construction Financial Management Association (CFMA). This resource first appeared in CFMA Building Profits and was posted on bkd.com with permission. BKD Trusted Advisors™ are regular contributors to this publication.