Did you know mismanagement of cash flow is one of the main reasons contractors fail? The four main variables affecting cash flow are the amount of work simultaneously performed, profitability on jobs, overhead costs and weather.
Construction Executive Magazine sits down with Direct Surety’s president, David Druml, to discuss how to identify underperformance and reduce costs by reviewing how to measure performance, labor, equipment, materials and indirect costs. Once problem areas are identified, project managers can focus on bringing performance back on track.
An improving economy is often a precursor to a rise in contractor default. Why is this the case? For starters, in the excitement of building a bigger backlog contractors are often unprepared to support an increased workload with the existing resources.