Tag: Cash Management
-
How Much Cash Does a Subcontractor Need to Start a New Job?
Here’s what’s really going on in the scenario above: the real reason why the subcontractor in the example above needs so much cash to keep that project going, the lights on, and his people paid is because of how long it takes for his customer to pay their bills! Or in other words, the faster…
-
How to Find Out How Much Money Your Construction Company Can Borrow
Taking on new projects or jobs places a large cash burden on construction companies, particularly for subcontractors that are forced to “float” the project costs up front. Since the amount of cash needed will vary from day-to-day (based on the cash flow of the individual project, as well as the company’s overall cash flow from…
-
How Construction Companies Can Get Paid Faster
Even in an industry in which payment problems are an acknowledged and visible issue, most invoices or pay-apps end up getting paid. It’s easy to bemoan the problems associated with payment in the construction industry – after all, they must be obvious as a whole mess of vendors (and a portion of a construction participant’s…
-
Is Payment Up Front the Way to Avoid Payment Problems in Construction?
At the risk of cutting down the time you spend reading this article, I’ll mention right up front that – as is generally standard when a question is posed in the title of an article – the answer is “no.” But in order to get there, it’s worth spending a little bit of time examining…
-
Prompt Pay: Overview and Limitations
Fortunately, there are laws to streamline construction participants’ time to payment – these Prompt Pay laws provide a general timeline for payment moving through each level of the contracting chain. While not a “fix-everything” solution, the guidelines set out by the prompt pay laws in many states should provide the base-line time in which a…