Managing Project Cash Flow in Construction

Construction projects follow a "J-Curve." You spend money on materials and labor upfront, and the profit only comes right at the end.

Front-Loading Claims

To survive the J-Curve, successful builders "front-load" their progress claims. This means billing slightly more in the early stages (Site Prep, Slab) to build a cash buffer for the expensive middle stages.

Supplier Terms

Negotiate 30-day or 60-day terms with suppliers. If you get paid by the client in 14 days but pay suppliers in 30 days, you are using the supplier's money to fund the project.