Cash Flow Management for Construction Companies

Cash flow is the lifeblood of every construction company. You can be profitable on paper and still go out of business if you run out of cash. **The Construction Cash Flow Problem** Construction has unique cash flow challenges: - Large upfront costs before first payment - Payment terms of 30-60-90 days - Retainage held until project completion - Seasonal fluctuations in work - Unpredictable client payment behavior **The Statistics Are Sobering** - 82% of construction business failures cite cash flow problems - Average days to payment in construction: 83 days - 72% of contractors have faced payment delays This guide will help you master the strategies to maintain healthy cash flow.