6. Preserving cash flow and margins

There are at least two aspects to money: cash flow and margin.

Cash flow is the lifeblood of any business, which cannot survive without it.

Managing cash receipts from customers according to the contract schedule, and cash disbursements by controlling payments to suppliers and subcontractors, is an important part of day-to-day project management.

For this ongoing background work, the project manager will be supported by the cost controller, who will keep a close eye on the situation and take the necessary action to boost the project's cash flow.

Negative cash flow on the project will have unfortunate financial consequences for the company, which will have to pay interest, which will inevitably be reflected in its results, as these loans will of course have to be financed.

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