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A Constant Stream of Helpful Content on Getting Paid in Construction
Cash Flow Forecasting in Construction: How to and Best Practices
Construction companies need a steady flow of income to ensure that their projects and day-to-day operations are properly funded. If the inflow of cash becomes negative – that is, the money coming in is less than the money going out – it can pose serious problems to a company’s financial and overall health. Maintaining a […]
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Are Late Payment Penalties a Good Idea in Construction?
Late payments are one of the most common problems in the construction industry. It doesn’t matter how diligent you are in completing your tasks or how efficient you are in sending out your invoices – there will always be clients who will struggle to pay on time. One way to curb the problem of late […]
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How Construction Site Efficiency Can Reduce Late Payments
Timeliness is a pervasive issue in the construction industry. Projects frequently run over schedule, and even after completion, payments typically take far longer than they should. These delays can take a toll on smaller, independent contractors’ finances. A 2019 survey revealed that 43% of American subcontractors wait between 30 and 60 days for payment. Another […]
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7 Important Accounts Receivable KPIs for Construction Collections Departments
Construction companies need to evaluate their processes in order for them to understand what’s working and what isn’t. If, for instance, you are consistently struggling to maintain your cash flow due to frequent late payments, there may be something amiss in your collections processes or your credit policies. Knowing which areas need improvement and which […]
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Early Warning Signs of Delinquent Construction Clients
In an ideal world, all construction projects run problem-free with little to no roadblocks during the entire process. In practice, however, issues and complications often come up in every project, and they can cause major disagreements among project stakeholders. Substandard quality of work and late payments are two of the most common results of poor […]
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What is Collection Effectiveness Index and How is it Calculated?
Businesses use the right key performance indices or KPIs to make informed and data-driven decisions. One such KPI is the Collection Effective Index or the CEI. The CEI specifically allows a company to understand how effective their collection practices are, and it is particularly important for construction companies or material suppliers that extend trade credit […]
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Strengthening Customer Relationships as Construction Revenue Protection Strategy
Construction is a competitive business. A client can “jump ship” at any point, and losing customers can mean a huge dent in your company’s revenue. If you wish to protect and grow your revenue, you must therefore focus on strengthening your relationships with your customers. Building good and long-term relations with your clients may seem […]
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Can Lean Construction Help Decrease Late Payments?
The construction industry is vast. From start to finish, it includes initial planning to building to marketing and selling. With a team of architects, designers, contractors, engineers, and real estate agents, even just one project includes countless professionals. As the number of participants increases, businesses and individuals may see repercussions. Overproduction, a lack of communication, […]
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How to Select a Debt Collection Agency for Construction Companies
Payment collection is one of the biggest and most stressful challenges that companies face in the construction sector. When payments do not come on time, bigger financial troubles are highly likely to follow. This is true especially in an industry like construction that heavily depends on managing supply chains and credit payments. Since late payments […]
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