During CFMA’s 2024 Annual Conference & Exhibition, the Residential Construction Subcommittee had the opportunity to provide guidance and resources to make the residential market sector Bigger and Better by hosting two sessions.

WIP Your Residential Contractor Into Shape

The first session was a panel discussion focused on taking a deeper dive into each project on a residential contractor’s work-in-progress (WIP) report. Whether a single/multifamily developer or builder, GC, or subcontractor, this class provided take aways for construction managers to be able to contribute to the company’s profitability, cash flow, and project management by analyzing their companies’ WIP report in a different way.

The panel (consisting of single-family and multifamily developers/builders) shared key concepts and reports needed to develop a comprehensive residential WIP report, identified techniques to manage key financial components from a WIP report, and provided tips on using change orders and accounts receivable aging to increase cash flow.

The panel highlighted the differences between a single family and multifamily WIP report and concluded the session by delivering key action items for the attendees to take away in order to add value to their company while preparing and analyzing their WIP report.

Financing Options: A Residential Contractor’s Lifeline

The second session highlighted the different financing options residential contractors can use to consistently perform in different economic conditions.

The panel included single and multifamily developers/builders and an expert from the banking industry.

The session began with the banking representative providing an update on the current economic conditions and banking requirements for the residential market. Many economic factors (interest rates, the presidential race, etc.) that residential contractors have no control over impact their ability to finance construction projects. This conversation set the stage for the panel to discuss the various financial tools they use to maintain proper cash flow to meet their companies’ financial needs.

The session concluded with sharing best practices to mitigate financial risk in order to provide success for all parties involved with a residential construction project. It was determined that financing options and banking relationships are truly a residential contractor’s lifeline.

The Residential Subcommittee would like to thank the 2024 presenters and moderators and is looking forward to hosting additional sessions at the 2025 Annual Conference & Exhibition in Florida. If you’re interested in submitting a session proposal for consideration, please visit conference.cfma.org/session-submission for more information.