Construction’s warning lights are blinking. Most firms aren’t looking at the dashboard.

After nearly two decades of relatively stable growth, climbing interest rates and high inflation have project owners looking to pull back on spending. Establish a strong monthly close-out processA monthly close-out process should already be a part of a construction firm’s regular meeting cadence. They should also be sharing in as close to real time as possible the key activities of every project that’s underway. Track underbilling, change orders and cash flow problemsMore indicators that bidding practices may have become sloppy are high rates of underbilling and change orders. Monitor for bidding outliersThe bidding process is a window to the future for construction firms, but it can also be a thermometer for the industry as a whole.