The number of variables that influence the success of construction projects is endless. This makes financial management and project planning a constant juggling act. Too often the reality of profitability becomes clear to the finance team only at year-end closing, which complicates decision-making even further. We asked EG Jydacom’s Product Manager, Hanna Harra, why financial control in projects so often fails, what the everyday consequences are, and how CFOs can ensure financial balance even when conditions change.
What tends to cause the biggest financial challenges for construction companies?
Hanna Harra: “It is rarely one major mistake. More often it is the accumulation of small delays and unclear data, combined with reacting at the wrong time or based on incorrect information. For example, purchase orders may be placed without up-to-date budget information, or subcontractor invoices arrive months after the work has been completed. These small but repeated issues pile up and make it harder to keep the overall situation under control.
The profit or loss shown in the financial statement is the result of hundreds of small choices. If the profitability of a project is only discovered afterwards in the accounts, which is unfortunately common in this industry, the opportunity for financial steering has already passed.”
Why is it so difficult to stay on top of cash flow during projects? Isn’t Excel enough for most sites?
HH: “There is no shortage of data, but it is scattered across sites, the office, and partners’ systems. When information does not move in real time, decisions are made on outdated or incomplete data, and building reliable forecasts becomes extremely difficult.
Excel is a great tool, but it cannot keep up when projects grow larger or involve multiple stakeholders. Site conditions change quickly, and manual updates simply cannot follow the pace. Errors increase, and Excel does not provide an easy way to share a real-time overview with all decision-makers.”
How does high-quality forecasting impact the daily life of a construction company?
HH: “It allows for proactive decisions instead of reactive ones. Investment choices can be made with more confidence, and starting new projects becomes easier when the supporting data is solid. Forecasting also brings greater control over cash flow, which supports financing and helps business growth stay on track.”
What changes when site managers, procurement, and finance all have a real-time, detailed view of project income and expenses?
HH: “Collaboration improves significantly. When everyone sees the same snapshot, better decisions can be made faster. There is no need to guess or wait for reports, and issues can be traced back to their root causes immediately. This builds trust and reduces financial surprises during projects. With EG Jydacom, each role has its own view of project performance, which makes timely financial decisions and corrective actions possible.”
In your opinion, what is the most important thing a main contractor of a large project should consider in financial management?
HH: “Ask yourself whether your company has true financial responsiveness. If not, find out why. Focus on connecting data collection with decision-making. When information flows seamlessly from site to management and back, cash flow can be led proactively instead of being followed only in hindsight.”
If you could give one piece of advice to a growing construction company that wants to improve cash flow management and project predictability, what would it be?
HH: “Build scalable financial monitoring from the start. In growth phases it is easy to end up with systems and practices that cannot keep up. If cash flow management is transparent and predictable early on, growth is healthier and risks are easier to control.”
