National Fund – Kuwait
9 September، 2021
Five ways to achieve better process improvement in manufacturing
27 September، 2021
Introduction
Construction Industry plays a significant part in the success and growth of any economy. With the changing political, economic, social landscape with ever-present business challenges, companies operating in the construction space have constant uncertainty and complexity. To navigate through these challenges and have a financially successful construction business we have created this document to understand and find solutions to key problems faced by construction companies across the region.
Challenges of construction companies
The key challenges affecting construction companies accompanied by solutions are listed as below :
| Category | Challenges | Solutions |
| Cashflow | • Lack or inadequate cash flow planning. • Inadequate fund for an entire project due to late or non-payment. • Not identifying the accounting errors. • Not having comprehensive information of assets and liabilities. | • Help in getting clarity of the current financial status. • Getting clarity of the market trends through efficient financial statement analysis. • Identifying any accounting errors and assessing your business. • Helping in taking a better decision in terms of return on investment, lending, and corporate governance. • Analyse comprehensive information, leading to data-driven, detail-oriented decisions. • Get a detailed Categorized Financial Ratios Analysis, Financial Statement analysis, financial forecast, Liabilities & Asset Identification as well as Financial Performance Diagnosis. |
| Receivable Management | • Late payments by the customers. • Inadequate data management. • Difficulty in retaining customers. • Unable to make digital payments. • Accepting a high volume of paper checks is a big challenge in cash management. • No strategy formulation and optimization for creditors • Not giving importance to credit management. | • Helping clients to optimize the structure of sales process and customer outstanding. • Develop client and customer relationship. • Strategy formulation and optimization. • Act as your trustworthy and cost-saving credit controller. • Helps in credit collection, optimizing, software, and cash enhancement instruments. • Aids in credit management procedure and in formulating policy. • Acting as a trustworthy and cost-saving credit controller. |
| Payable •Management | • Multiple contracts are signed by multiple parties leading to a communication issue. • Scope of a project are not clearly defined. • Loan repayment issues and payment delays and disputes lead to cash flow mismanagement. • Poor business decisions lead to payment issues. • Payment disputes due to the lack of proper records of invoices, of services rendered, or of legal documents. | • Will help clients run regular accounts payable reports. • To help you determine your cash flow needs. • Scheduling payments at regular intervals. • Create and trace lien waivers for your projects. • Tracking and paying accounts are payable accurately. • Helping to manage cash flow using tools like construction accounting software and electronic routing of invoices. • Running regular accounts payable reports. • Scheduling regular payments ensuring better cash flow needs thereby systematic planning of your customer billings. |
| Project Reporting | • Projects are poorly defined. • Project managers are not clear of the project goals. • Unrealistic expectations set by clients, consultants, and the management. • Time constraints are one of the most significant issues faced in the construction company, leading to defective designs, high rates of accidents, and loss in revenue. | • Helps in identifying, optimizing, and aligning operation strategies by adopting qualitative and quantitative approaches. • Will empower clients to unlock their business excellence. • Review and adjust operational strategy. • Aim at achieving a balance between short term optimization and long-term change management. • A dedicated team who evaluates your performance and give optimal solution. |
| Resource Management | • Shortage of skilled labour. • Scheduling of work not done properly. • Changes in project scope and schedule. • No diversity in the workplace and worker safety. • Lowering workers’ compensation costs. • Not giving competitive wages and benefits packages. | • Formulating an effective hr scheme and strategy. • Help organizations in achieving better financial performance and maximizing talent and therefore ensuring workforce efficiency. • Acting as a dedicated advisor for overcoming hr challenges with tested and proven methodologies. • Provide HR Process Optimization, SWOT Analysis Talent Management or Staffing Status Evaluation. • Provides your organization with HR management system assessment or framework performance with the help of matrix, KPI, grading methodology. |
Conclusion
We at Infinity Management Consulting Company can also counsel for project management, cash management, account receivables and payables, compliance and risk management, supply chain optimization, marketing advisory, business advisory, asset management and many more services. We will work for you to achieve your goals to the best of our abilities and aid in converting your business challenges into business strengths. For more features, you can visit our website, www.infinitykw.co.
