Productivity, Performance, & Earned Value

 View Only
  • 1.  Retention in Cashflows

    This message was posted by a user wishing to remain anonymous
    Posted 01-06-2025 12:10 PM
    This message was posted by a user wishing to remain anonymous

    Happy New Year!

    When presenting Cashflow information for the month. Should the GC retention be included in the projected Cashflow or is this just covered in Accruals?



  • 2.  RE: Retention in Cashflows

    Posted 01-07-2025 04:31 PM

    Good afternoon,

    I was able to get some information from one of our SMEs and will post his response below:

    The cash flow report in Generally Accepted Accounting Terminology (GAAP) is reconciled to cash in the bank.     Starting and ending.    
    As we understand it contractor retention is not earned until the end of a future period.    Therefore, it cannot accrue or effect cash flow until the period notification is provided that the GC will be paid.     
    Mitigation factors.    We do not know the term of the GC - Some are financial oriented and some performance oriented.    Without this we can only generally reply.    The principle is effort is not earned until performance is finished.     



    ------------------------------
    Kyle Palmer
    Consultant
    Dallas
    kpalmer@k2consulting.com
    ------------------------------



  • 3.  RE: Retention in Cashflows

    Posted 01-08-2025 08:39 AM
    Hello, this might be of interest to some of you.

    Thursday, January 9th2025, 6:30pm US Eastern
    Section Meeting / Webinar Notice

    Technical Session: US & International Productivity Issues:
    How They Impact Construction Costs & Schedules

    Determining construction labor productivity variations between different regions of the USA and overseas countries is a challenging undertaking; it is highly subjective and constantly changing. In this presentation, John McConville will discuss the various factors his company tracks internationally that impact construction productivity, such as:
    •         Weather conditions / Local worker skills
    •         Training / Supervision issues
    •         Supply chain issues / COVID impact
    •         Skilled worker shortages / Crew size
    •         Offsite module / Pre-assemblies / Piping fabrication
    •         Union vs. Open Shop labor issues
    •         In-direct logistics / Support / Importation issues

    •         Construction equipment utilization and lack of correct equipment

    ______________________________________________________________

    Speaker:    John G. McConville, CCP
    Owner, Operations Director
    Compass International