Tag Archive for: project management

4 Tips on How to Manage Cash Flow in Construction Projects

Cash flow for a business indicates how much money they are spending and how much money they are making. A positive cash flow means that the business is earning more money than it is spending. A negative cash flow means the opposite and is a scary proposition for any business to encounter.

Cash flow in construction projects is exceedingly important. Construction jobs often rely on a steady flow of materials and labor to complete them. However, construction projects are often prone to large influxes of cash, say at the beginning of a project. And it may be weeks or months until another payment is made by the client.

This type of cash drought can leave construction teams in a tough spot, especially when looking to pay bills, purchasing more materials, or even meeting their payroll.

Why Forecasting Cash Flow is Important

It’s easy to assume that as long as money is coming in, you won’t encounter any cash flow problems. However, successfully managing your cash flow can also allow you to accurately forecast. By predicting when you’ll be paid and how much, as well as taking account of expenses that are on the horizon, it’s easy to anticipate cash droughts and avoid them. It also helps teams stay on budget. By maintaining a current account of what money has been spent and received, construction teams can see the larger picture of where the job is in terms of the overall budget.

How to Manage Cash Flow in Construction

Managing cash flow in construction projects is namely the same as any other business, but there are a few things you should pay close attention to:

  • Change orders – Process these when received, not when the project is complete. A change order is often the result of inclement weather or a need for more labor, materials, etc. Processing these orders quickly will positively impact the project’s cash flow.
  • Invoices – Don’t wait to invoice clients. Invoice them as soon as possible and as quickly as you can. Many companies expect a 30 day grace period to pay invoices, so in most cases, you’ll still have to wait weeks for the money to appear. You can also provide small incentives for businesses to pay their invoices faster; such as a 2% discount if they pay in 14 days. 
  • Payment methods – Another way to ensure faster payment is to provide multiple ways for clients to pay invoices. Make sure to include electronic payments and credit cards as part of your plan. Electronic payments mean that you get paid quickly and easily which increases cash flow and day-to-day operations.
  • Finance big purchases- Instead of paying all in one go, consider financing big purchases from suppliers. This will allow you more cash on hand to be used for the project. This does mean however that you’re at risk for interest charges but you may be able to write them off as business expenses.

Cash flow in construction companies operates differently than most businesses as not all projects are the same. That means that improving your cash flow in a project may require the use of different strategies.

Build a Strong Foundation with U.S. Bridge

At U.S. Bridge we work with our construction teams to successfully manage all aspects of a project, including cash flow. Please contact us if you would like to learn more about our bridge engineering and manufacturing or are interested in working with us. 

Or check out our exclusive BridgeScope tool for a quick quote today!

5 Ways to Stay Warm During Winter Construction

Even as temperatures drop, construction work continues. It’s important for worker safety and health, and job productivity for all workers to stay warm as much as possible during winter construction.

While job efficiency is important, an even more important factor is worker health. Without healthy employees, a whole construction can get disrupted and cause delays. The health of any worker is a crucial area of concern during the cold winter months.

Here are five ways that a construction worker can stay warm during the cold winter months:

1. Watch Fingers & Toes

The most exposed parts of our bodies, our extremities, are often the most vulnerable in cold weather. When it’s cold, it forces our bodies to work harder to keep blood flowing to our core.

That means exposed areas such as our fingers and toes are prone to suffer from a cold-related injury such as chilblains or frostbite. Wool socks and warm gloves are the first lines of protection against the cold. If one pair of gloves isn’t enough, look into glove liners.

Also, consider using composite-toe boots as opposed to steel-toed boots during winter construction. Steel-toed boots can exacerbate the cold by not keeping your toes warm. Though a steel toe does offer more protection for your toes, a composite toe boot will keep your toes warm throughout the cold day. Hand warmers and feet warmers can also help keep you warm. Plus, they can be easily concealed.

2. Stay Dry

Nothing is worse than being cold and wet at the same time, especially on cold and slushy days. Sometimes winter construction means snow, sleet, rain, or a messy combination of all three. If it’s not bad enough to shut down the site for the day, be sure to stay dry.

Wearing moisture-wicking material close to your skin will help keep moisture from lowering body temperature. One last way to stay dry is probably the most obvious, but goes without saying; invest in a waterproof outer layer as well for even more protection against damp weather.

3. Have Extra Pairs of Everything

Imagine yourself waking up on a cold winter morning, you are getting ready for the workday, and you put on your favorite pair of long johns, and you find a giant hole in the most inconvenient spot. Now you have to go through the day with a giant hole in your long johns, exposing yourself to a cold, damp tundra.

Avoid this nightmare situation by investing in extra pairs of gloves, socks, liners, moisture-wicking material, and of course, long johns. It’s also a good idea to dress in layers, so some of these extra items might be used to double up when it gets frigid for extra warmth.

4. Keep Your Head and Neck Covered

As mentioned in our first tip, keeping your extremities covered is vital to staying warm and often overlooked extremities are our ears and neck. Ears get cold extremely fast and while it’s a myth that you lose a majority of your heat through your head, it’s still wise to keep your head covered while out in the cold. Earmuffs, a warm scarf and a turtleneck will go a long way to insulating your body heat while enduring the cold weather.

Ears can be overlooked as an extremity, but they can get cold fast.

5. Fuel Your Body

Have a thermos with you of a hot beverage or soup to help you stay warm. Your body uses a lot of energy when you’re working, especially in the cold so it’s important to have hot beverages and meals to fuel your body. Eat an extra meal or consume hot caffeinated beverages to help you stay warm and also fight the lethargy of the cold.

During winter construction, it also helps to take frequent breaks and give crews somewhere to get warm. Make sure your workers are aware of the signs of overexposure and what to do.

All of these things will help to keep you warm on a construction site.

Build with U.S. Bridge

At U.S. Bridge, we work hard to meet the needs of our staff, our customers, and the industry with our attention to detail, our high-quality materials, and our skills.

Interested in starting your project with us? Contact us for a free quote or check our exclusive Bridge Scope tool to start building your project today.

How To Improve Collaboration In Construction

A large-scale construction project can easily take hundreds of people from different trades to complete. But how do so many different individuals from various skills and backgrounds, work together to finish a job on time? Here are some ways to consider to improve collaboration in your construction projects.

Poor Communication Has Consequences

We all know that poor communication causes misunderstandings and can set work back in any field. But how significant is poor collaboration in an industry like construction?

Well, without a well-thought-out plan, every phase of the construction project will suffer. Poor collaboration will lead to misunderstandings, slow turnaround times, errors, and wasted time. Every delay can open the door to a number of claims or expensive penalties depending on the type of project and contract.

Investing in ways to improve collaboration can preemptively avoid these situations.

Ways to Improve Collaboration

Start at the Beginning

Every project starts with a roadmap. Use the early planning stages to bring together key players, discuss project details, establish everyone’s roles, and define expectations. Even though this may seem fundamental, it’s important that individuals feel that the project allows and insists on open communication. This will help foster better work relations among crew members and make collaboration easier.

Not to mention, this makes it easier along the way to develop plans to handle any issues that may arise.

Look for Collaborative Tools

With the rise of technology in construction, there are so many different digital tools that can help improve collaboration. Investing in a digital platform can keep your team organized, make task management more efficient, and help coordinate schedules between various employees.

There are a lot of cloud-based collaborative management systems designed for the construction industry such as Procore, PM Web, Prolog, Expedition, BuilderTrend, and Viewpoint. Users will have access to project information, make changes, and share files easily with internet access.

Plus, these systems can help track the completion of different areas of the project. That way, each team knows how far along the others are and can use that information to make decisions about their own work. This will streamline the communication process and make back and forth exchanges easier and faster. Not only would this save you time and effort but it also holds teams accountable for their work.

With so many different options available, it’ll be easier to choose a system that works best for you and your team.

Invest Now & Save Time and Money Later

Although it may be a higher initial cost to incorporate methods of improving collaboration, it’s worth it in the end. A successful project collaboration allows you to reduce inefficacies in manpower, money, time, better on-time project delivery, better company reputation, and higher ROI.

In fact, a report discovered that “companies that build high levels of trust can save millions of dollars annually from benefits that include lower turnover rates, fewer missed schedules, and more repeat business”.

Work Smarter with U.S. Bridge

Our 80 years of construction experience is why we can handle construction projects of various caliber. We are confident that our engineering and manufacturing expertise is just what you’re looking for to complete your project! 

Contact us for a free quote or check our exclusive Bridge Scope tool to start building your project today.