Keep on top of complex construction projects
Construction is a uniquely project-oriented sector that requires businesses to make significant investment upfront and carefully manage cash flow through uncertainty to unlock returns over the long term. This brings with it a range of specific challenges in terms of budgeting, forecasting, scenario planning and asset utilisation – challenges that don’t affect any other sector.
To meet these challenges head on, construction companies must utilise Financial Planning & Analysis (FP&A) software that can enable better decision-making through nuanced analysis, dynamic forecasting and maximise Return on Investment (ROI) on a risk-adjusted basis.
Common challenges
Cash flow planning
The cash flow curve in construction can be extreme, requiring careful management to avoid liquidity concerns.
Large upfront investment
For most construction projects, a large upfront investment is required to get the project off the ground. This upfront cost can typically only be recouped over the long term, resulting in a cash crunch that, if not managed effectively, can cripple your business’s operational capabilities. Managing treasury and dealing with financing options requires good foresight.
Cash flow crunch
Without requisite planning and risk mitigation processes, a single departure from the stated plan can place a company in a cash crunch that means they can’t pay suppliers or workers on time. This liquidity crunch can force costly borrowings, or even place the company’s existence in jeopardy.
Nuanced cash flow planning
Cubewise and IBM Planning Analytics / TM1 offer a powerful suite of tools for advanced cash flow planning that can help construction companies manage their risk and avoid liquidity problems entirely. By utilising sophisticated scenario planning, driver-based forecasting and real-time data analysis, construction companies can stay on top of their numbers and access the information they need to make smart, proactive decisions.
Feasibility studies
Asset utilisation
Large upfront investment
For most construction projects, a large upfront investment is required to get the project off the ground. This upfront cost can typically only be recouped over the long term, resulting in a cash crunch that, if not managed effectively, can cripple your business’s operational capabilities. Managing treasury and dealing with financing options requires good foresight.
Cash flow crunch
Without requisite planning and risk mitigation processes, a single departure from the stated plan can place a company in a cash crunch that means they can’t pay suppliers or workers on time. This liquidity crunch can force costly borrowings, or even place the company’s existence in jeopardy.
Nuanced cash flow planning
Cubewise and IBM Planning Analytics / TM1 offer a powerful suite of tools for advanced cash flow planning that can help construction companies manage their risk and avoid liquidity problems entirely. By utilising sophisticated scenario planning, driver-based forecasting and real-time data analysis, construction companies can stay on top of their numbers and access the information they need to make smart, proactive decisions.
A sophisticated planning system for all your construction needs
Cubewise and IBM Planning Analytics / TM1 provide a highly advanced and holistic suite of solutions for construction companies that want to take their planning and forecasting to the next level. Whether it’s protecting project profitability, performing feasibility studies, measuring ROI, running scenario tests, managing cash flow or optimising asset usage, we can assist you.
If you’re ready to take the next step and supercharge your construction planning and analysis, get in touch today.
Amazon Web Services case study
We came up with a solution for Amazon Web Services that allows them to plan more efficiently.
Talk to us today and let’s overcome the challenge together.
When a system is unable to adapt to changing business circumstances, it can be tremendously frustrating for all who work with it. Things must go on, of course, and so users will resort to building tedious workarounds, simplifications and shortcuts that only serve to kick the can down the road.
Don’t accept that your business processes are incapable of adapting to fast-moving market changes. Contact us to find out how easy it can be to implement efficient and practical planning, reporting and forecasting workflows.
