Cash shortfalls affect the schedule of a construction project and adversely affect its integrity. As a project manager, the best way of dealing with them is to avoid them in the first place. This sounds easier said than done. However, not all project managers are successful in preventing cash flow problems for their ongoing projects.
Kanat Sultanbekov New York- the importance of billings for arresting cash flow problems
Kanat Sultanbekov is a credible and highly experienced construction manager from New York famous for his proactive leadership skills and the ability to finish construction projects in time. He is known to successfully balance strategic planning, risk assessments, and operational processes in all his projects while maintaining the highest levels of safety.
Preventing cash flow shortages
According to Kanat Sultanbekov New York, the ideal way to deal with cash flow problems on construction sites is to boost cash management skills, which begins with bills. Every job is different for the project manager. However, they must focus on favorable contract terms to help them accelerate the cash flow for the project. The contract should have a fixed bill schedule that is in sync with the project’s plan as per the job’s specifications.
Submission of bills
The bills should be submitted per the terms and conditions of the construction contract. The project manager should be allowed to prepare the statement after the tasks are completed rather than wait for the completion of the project for the payments to be made. At the same time, the contract should allow billings for jobs that cost more so that managers can estimate the expenses during a fixed period and make the required adjustments to the costs as needed towards the close of the project.
Communication plays a key role
Collections need to be successful for billings, and so it is here that communication plays an instrumental role. The manager should ensure proper communication procedures and the filing of liens when needed. He should not be hesitant to use these liens when their need arises in the future. The manager also needs to look into the under-billing cases for tasks and services. Under-billings are unsuitable for any construction project, as the manager cannot handle the cash flow properly. The latter is good for the project only if it has been collected or its receivables are yet to be collected.
According to Kanat Sultanbekov New York, cash management skills for construction projects cannot be learned overnight. Project managers need to learn from experience and practice. Here, they should create a cash flow analysis to get a clear picture of the funds coming into the project and its expenses. Though this analysis does not guarantee that it will resolve problems, it will help you in your cash management abilities when you are in charge of a construction project. Once you get the idea of how to handle the cash, it becomes easier to execute the same.