ABSTRACT

In reality, 'cash flow' is the responsibility of every individual in the organisation, and success or failure starts from day one. One could be signing plenty of deals for handsome amounts, but until one collects the money, one cannot spend it. Consequently, if the money is not flowing into the business to satisfy creditors and suppliers when it is needed, then trouble beckons. In other words, all the various functions need to be geared from the outset towards 'good cash flow'. This starts with the tendering to order process, where every attempt should be made to agree sensible payment terms and to reject onerous terms. The subcontract agreement or order should be carefully vetted to ensure that it faithfully represents what has been agreed. The programming and resourcing of the job should be done with one eye on the tender allowances.