Managing Construction 19

Question 1

How do you decrease the cash conversion cycle?

Answer 1

Keep only the good customers and don’t waste money

Question 2

How do you improve the ROI of a project?

Answer 2

The two major parts of ROI are the CASH TO CASH CYCLE and a PROJECT’S PROFIT MARGIN.
KEEP AN EYE ON THEM.

Question 3

What are the four KEY FINANCIAL CONTROL MEASURES you should review at least monthly?

Answer 3

1. Company Profit and Loss
2. Job cost with Cost-to-Complete calculations
3. Cash flow
4. Gross profit per man-hour or man-week

Question 4

Which construction factor is the true profit opportunity for most firms?

Answer 4

LABOR