Crushing Financial Construction Management in 2023
Financial planning plays a vital role in the success and growth of any construction firm or program initiative. It’s critical to manage, assess, and improve strategies and processes that impact cash flow; as this is a key consideration when bidding for projects or determining if investing in a commercial renovation or build is worth the return on investment. For example, as a construction firm, the decision to bid on a large project can have great impact on the finances of a company.
When deciding whether to bid on a project, key decision makers find themselves asking the following questions:
Do we have enough cash resources to perform this work or will we need outside funding?
Should we hire employees or subcontract the labor?
Should we lease or purchase additional equipment needed for this project?
If we purchase the equipment, what options do we have for financing?
Will this project require an increase of strategic overhead?
The answers to all of these questions will affect a company’s finances. The answer to one of the questions may change the available options to other questions. For example, if the manager decides to hire employees to perform the work on the project, the project will require more financial resources than if the company had hired subcontractors to perform the labor and may leave the company with insufficient resources to purchase the additional equipment, and leave leasing the equipment as the only option.
Construction is a fascinating and confounding process all at the same time. When done well things run smoothly and seem so simple, but there are so many places for processes, budgets, scope and relationships to go astray that having a strong financial leader to help focus is important. Our team at FMG Construction have the resources to not only ensure that your projects are implemented successfully; but your overall construction goals are considered as well. Contact us for more information on on how we can help you with your next project!
