Construction Cash Flow Management Guide
Practical cash-flow controls for contractors: forecast timing, billing evidence, retention, procurement, payroll, tax and payment-delay scenarios.
Separate profit from cash
A profitable project can still fail if cash leaves before certificates and payments arrive. Forecast the timing of receipts and payments, not only the final margin.
Build the forecast from the programme
Connect planned production to procurement, labour, subcontractors, plant, preliminaries, claims, retention and payment terms month by month.
Protect billing evidence
Submit measurements, delivery notes, progress records, approvals and variation support on time. Track submission, certification, invoice and payment as separate milestones.
Plan for delay and retention
Model realistic late-payment and retention scenarios. Decide in advance how much working capital the business can safely commit.
Update using actual information
Reforecast regularly with actual progress, committed cost, approved changes, outstanding claims and expected payment dates. Escalate negative trends early.
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