Any project big or small needs to be effectively managed so that everything runs smoothly. When it comes to cash flow, it’s even more important that finances don’t go awry to ensure a project stays on track and is completed on time.
UK Construction Online recently reported Hudson Weir’s top tips for controlling cash flow in the construction industry, which includes making a solid plan (and sticking to it!), maintaining clear, open lines of communication and monitoring progress at all times. While we agree with all of the above, it can be a lot easier to stay on top of things and manage cash flow with the right construction management software in place.
To create a detailed, coherent plan, you need to pull together lots of data from various sources and, to keep that plan up-to-date, you need to monitor developments and performance across a project.
Software like Eque2’s Construct gives you a real-time view of how work is progressing, so you can easily monitor budgets and quickly spot when a job is on track to go over-budget. For example, a project manager can put in place controls that send automated alerts when a PO threatens a contract’s profitability.
Subcontractor management is a huge part of cash flow management, so it’s crucial you maintain strong links with subcontractors. By generating automated, accurate reports and giving you total control over when and how much to pay subcontractors, the right software can make life a lot easier.
If you could record, verify and report on every CIS payment automatically, as soon as they’re made to HMRC, wouldn’t it boost your relationship with all your subcontractors? Along with automatically produced invoices and letters, managing subcontractors – and, subsequently, cash flow – couldn’t be easier with Eque2’s Construct software.
Manually compiling project data across multiple spreadsheets and data sources runs the risk of errors being made. Software that can gather information and update project data in real time keeps everyone in the loop and eliminates the chance of confusion.
Eque2’s Construct ensures subcontractors have all the information they need, monitors budgets (for example, a rise in material costs) to keep you on budget and allows you to review and analyse a project after completion to see where improvements can be made.
When it comes to cash flow management, there are many ways – as identified by Hudson Weir – that you can track, monitor and plan to save money and stick to budgets. However, construction management software like Eque2’s Construct gives you total control and peace of mind. It saves you time and money, so you can stop fiddling around with spreadsheets and focus on growing your business.
You can find out more about our construction management software here.