What is a significant effect of improved financial practices post-CMS evaluation?

The enhancement of the ability to manage project costs is a significant effect of improved financial practices following a Contractor Management Survey (CMS) evaluation. This improvement stems from a more structured approach to budgeting, monitoring, and controls that can be implemented after evaluating current financial practices. With better financial management, contractors can accurately track costs, identify areas of over-expenditure, and readily adjust budgets to align with project needs.

Effective cost management allows for more informed decision-making regarding resource allocation and project planning. This not only aids in maintaining financial stability but also positively impacts project timelines and overall profitability. Consequently, enhanced project cost management is key for ensuring that projects are completed within budget, reducing the risk of financial overruns and ensuring a healthier bottom line for contracting firms.