Why profitable projects can still create cash-flow pressure.

Progress claims and timing

A healthy project margin does not necessarily eliminate a timing gap. Directors should map the expected claim date, certification delay, payment terms and retention impact against payroll and supplier due dates.

Pipeline versus cash

Future contracted work can be commercially valuable while simultaneously increasing the amount of cash required to mobilise teams and suppliers.

Information to prepare

Current contracts, work-in-progress reports, debtor ageing, expected claims, management accounts and existing finance give a clearer picture than a single bank balance.

This article is general information only and not financial advice.