U.S. construction companies have built solid revenue gains since the housing bust and the financial crisis that followed. However, the upcycle can bring challenges related to managing cash flow for some contractors and subcontractors due to a widening gap between when firms receive payments and when they must pay their own bills. Annie Gray via UnsplashAccountants who regularly work with construction contractors and subcontractors say Sageworks’ data is consistent with what they hear from clients about challenges managing the flow of cash into and out of these businesses. Before the financial crunch, contractors could get part of the contract amount paid up front to cover “mobilization,” or purchasing the materials needed for a job. He is a member of the Construction Financial Management Association, Associated Builders and Contractors and the Construction Industry Conference Committee of the Pennsylvania Institution of Certified Public Accountants.

Source: Forbes December 10, 2017 11:15 UTC