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This tool helps the construction companies see their cash flow ahead of time. Concerns about cash flow is one of the biggest struggles construction companies and contractors face — and for good reason. These businesses typically lay out large amounts of money for project-related expenses. Waiting to get paid until the job is complete is a sure way for a company to go out of business. An alternative approach is for businesses to be paid when predefined stages or percentages of a project are complete, a model called “progress payments.” Progress payments benefit all parties involved.
By Mark EastmanThis tool helps the construction companies see their cash flow ahead of time. Concerns about cash flow is one of the biggest struggles construction companies and contractors face — and for good reason. These businesses typically lay out large amounts of money for project-related expenses. Waiting to get paid until the job is complete is a sure way for a company to go out of business. An alternative approach is for businesses to be paid when predefined stages or percentages of a project are complete, a model called “progress payments.” Progress payments benefit all parties involved.