The flow of money is at what point and how each participant is paid. This is important as the smooth running of any development involves each participant being paid on time and given the agreed payment based on the value of their works. It is also important to ensure the correct tax deduction rate is applied to any payment. If you have chosen the staged payments delivery method the monthly valuations of completed works are a key aspect of the project. This stage of the process requires acute management experience to ensure you get the best price possible for the works you have completed. The profit margins in a social housing development are usually tight and any error or misjudgement in this stage of the process can lead to significant profit losses. The cash flow throughout a project can help to alleviate any issues that arise. As such the payment responsibilities must be adhered to ensuring overall project success. Cashflow and payment planning are inextricably linked to the overall project program and changes in either will influence the other.
Protecting and expanding profit margins
The biggest priority in any construction project is to make a profit. During the project appraisal and tendering process, the profit margins are set. Achieving those margins and ensuring they are as high as possible needs to be a central focus of every operation undertaken during the project. Evaluating every activity, work practice and material used needs to be focused on achieving the best value possible to ensure this profit margin is met while maintaining the quality of the overall works and complying with building regulations. Monitoring and challenging every decision can ensure that every stage of the process runs smoothly and that your profit margins are not negatively affected.