Readiness check

Is your cash flow under control or running you?

Construction runs on cash, not paper profit, and contractors go broke while profitable because the cash goes out long before it comes in. The WIP schedule and fast billing are what keep you ahead of it. Answer for how the money is actually managed. This is general guidance; confirm with your construction CPA. The score stays on your device; enter an email only if you want the cash flow checklist sent over.

1. Do you run a WIP (work-in-progress) schedule that compares cost and percent complete to billings?Yes, a WIP reviewed regularlyOccasionally, not a habitNo WIP

2. Do you know on each job whether you are overbilled or underbilled?Yes, tracked per jobRoughlyNo idea

3. Do you catch underbilling (work done but not billed) and fix it fast?Yes, the WIP flags it and we bill itSometimes we find it lateWe finance jobs out of our own cash

4. Do you bill early, on time, and accurately (pay-app the day it opens)?Yes, billing goes out promptly and cleanWe bill late or leave items offBilling is an afterthought

5. Do you collect fast and use your lien rights as leverage?Yes, aging tracked, lien rights preservedLooselyWe let receivables drift

6. Do you manage and bill retainage so it does not pile up uncollected?Yes, retainage tracked and pursuedWe forget about it until the endNo retainage tracking

7. Do you price and bill change orders before doing the work (not free)?Yes, every change order priced and approvedSome done on a handshakeWe do extra work and hope to get paid

8. Do you forecast cash and use an honest cost-to-complete to catch margin fade?Yes, cash forecast and cost-to-completeWe watch the bank balanceNo forecasting