EUROCERTIF
Many profitable construction companies run into trouble not for lack of projects, but for lack of cash at the right moment. Between advancing materials, paying wages and clients who settle late, project cash flow is a permanent balancing act. It directly affects liquidity, one of the five criteria of EuroCertif certification. Here are seven concrete tips to keep it under control.
1. Ask for deposits
The deposit on order is the first protection of your cash flow. It funds the purchase of materials without dipping into your reserves and commits the client. For a large project, plan a deposit at the start, then interim payments linked to progress.
2. Invoice in stages
Rather than waiting until the end of the project to invoice, split it into milestones (foundations, structural work, finishing) and issue an invoice at each validated stage. This smooths your income and reduces the amount you advance at any given time.
3. Shorten payment terms
State your payment terms clearly on every quote and invoice, and favour short terms. An invoice paid at thirty days rather than sixty is a month of cash flow gained. Do not hesitate to offer electronic payment to speed up settlements.
4. Chase without delay
An unpaid invoice does not settle itself. Set up a systematic reminder procedure: a courteous reminder as soon as it is due, then firmer follow-ups. The earlier you react, the faster you are paid — and the lower the risk of a definitive write-off.
5. Negotiate with your suppliers
Cash flow also plays out on the outgoings side. Negotiate payment terms with your material suppliers to align your outflows with your inflows. Ideally, you are paid by the client before, or at the same time as, you have to pay your suppliers.
6. Plan ahead with a cash-flow forecast
A simple forecast table, updated each week, changes everything: it shows expected inflows and outflows and reveals tight periods in advance. Anticipating a dip lets you manage it calmly — by postponing a purchase or drawing on a credit line — rather than enduring it.
7. Keep a safety reserve
Finally, keep a cash cushion at all times to absorb the unexpected: a client who is late, bad weather, an urgent order. This reserve avoids resorting to a costly overdraft and strengthens your liquidity, and therefore your reliability score.
Cash flow and certification
In the EuroCertif grid, liquidity measures precisely the ability to meet short-term commitments: it counts for 20 points out of 100. Well-managed cash flow therefore directly improves your score — and, above all, it spares you the tense situations that weaken even companies with full order books. By applying these seven reflexes, you strengthen your company and prepare the ground to request your certification.