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Here’s a brief glance at what you’ll find in the September / October 2010 issue…
Many construction business owners may see cash flow forecasting as either a distraction from day-to-day activities or as a daunting, implausible undertaking. But getting a clearer picture of where a company’s dollars are going isn’t as difficult as one might think. This article shows how to estimate earnings with front-loaded billing schedules, and then, with data from estimated billing schedules and projected general operating expenses, to forecast cash flow in the near future. A sidebar lists five cash flow killers that can be prevented.
Constant materials purchases on construction projects can not only cause a lot of confusion, but also cost valuable hours tracking down invoices, double-checking figures, and making phone calls to managers and subcontractors. But automated purchase order software can speed buying processes and take much of the guesswork out of who’s buying what, when. This article examines how purchase order applications can use purchase orders to set up work orders, create schedules, and update and e-mail or fax weekly schedules, and use the original work orders to create invoices and send payment to subcontractors and suppliers.
Construction materials prices are erratic and largely unpredictable, but price adjustment clauses in a contract are one way to prevent, or at least mitigate, such sticky situations. These clauses identify specific materials at risk for price increases and set an effective date from which to measure price changes that trigger an adjustment to the contract amount for materials. This article explains how they can help both contractors and owners save time, money and risk.
In this issue’s “Construction Success Story,” a general contractor was torn. He knew he could put together a stellar bid for a new condominium project, but the owner involved was highly dubious. This local property developer had been involved in some unflattering legal proceedings of late and its financial standing was uncertain to say the least. The contractor’s financial advisor, however, gave the contractor sound tips on how he could proceed while protecting his interests.
Presentations
Preventing and Detecting Fraud in Construction Companies - 2005
The Revolving Surety World; 2005 Presented by Smith Currie & Hancock, LLP
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