From the ground up – Rebuilding a basic budget for your construction company

Description

Abstract: In the hustle and bustle of moving from one project to the next, some contractors may let their budget slip onto the back burner or out of sight completely. If so, it’s important that they start rebuilding it so as to properly manage revenue and cash flow. In particular, three elements— income statement, cash flow statement and balance sheet — should serve as the foundation of a sound budget. A sidebar to this article takes a look at the pay-for-performance model to help keep labor costs in line.