Being able to maximize performance bonds can make or break your construction company, which may be why successful contractors spend so much time focused on the balance sheet of their financial statements. But, there are only 24 hours in a day, and when it comes down to it, staying on top of working capital is just one aspect of a contractor's job. That's why savvy construction firms, like Benchmark Construction Company, value their relationship with their accounting firm; a strong partnership is instrumental in producing strong financial statements and building working capital to secure bonds for larger jobs. Completing these tasks quickly and accurately maximizes your ability to spend more time looking for new business.
Benchmark Construction Company tackles approximately $95 million worth of jobs
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As Vice President of Construction, Callahan was introduced to the world of managing building schedules, reviewing contractors invoicing for work complete, ensuring the alignment of costs and estimates, and strategizing for future business. The company was growing quickly, and part of winning new business meant securing performance bonds.
Performance bond capacity hinges on a company's ability to show viable working capital. Building working capital isn’t rocket science: "If you look up working capital, it's a simple formula," explained Callahan. "It's your current assets minus your current liabilities, and that's your working capital.” But where the theory of building working capital is simple, applying it to your own company in a highly competitive industry takes time and expertise. Callahan reported meeting with several members of the Walz Group over the years for outside perspective on building the necessary working