Case Study: How a $5B Construction Firm Strengthened Cash Safety, Liquidity, and Operational Efficiency

The Challenge: Idle Cash With Liquidity Risk Exposures

Like many general contractors, the firm managed cash across multiple bank accounts, constantly moving cash between operating accounts and money market funds to generate returns and make payments.

• Large balances sat idle in operating accounts for weeks at a time between project payments to subcontractors and suppliers 

• When timing allowed, funds were manually moved into money market funds or to earn yield, then liquidated days before payments were due

• A single operating account at the firm’s bank pools cash designated for separate payees at any given time

While the approach was common in the industry, it created exposure to balance sheet risks and operational inefficiency for the treasury team.

Why the Firm Introduced Jiko (Without Replacing Its Banks)

The firm introduced Jiko as an additional cash management tool alongside existing bank relationships, using it to modernize how idle and reserve balances were managed without disrupting day-to-day operations.

Combine reserve and operating cash to reduce friction

Reduced the need to constantly move money between operating accounts and investment vehicles through yield-generating accounts with full operational capabilities to initiate and receive payments through banking rails.

Earn the “risk-free” rate on balances with programmatic investment 

With cash immediately and automatically invested in T-bills on behalf of the firm and reinvested at maturity, the firm is constantly accruing returns, reaping the benefits of tax advantages at the state and local levels.

Reduce liquidity risk by keeping funds off balance sheets 

The firm eliminated the possibility of losing access to cash due to leveraged or commingled structures, helping ensure obligations can be met regardless of market stress or banking crisis.

Organize cash by purpose

Intuitive cash segmentation capabilities made it easy to generate multiple accounts, allowing the firm to segregate funds for specific purposes (e.g., funds for payroll, individual subcontractors, or reserves), each earning yield and fully operational.

The Solution: Jiko Pockets

Jiko is a financial platform, national bank, and registered broker-dealer that operates a uniquely safe deposit model where client funds are directly invested in T-bills, never exposed to leverage, and fully operational. 

Accounts at Jiko, referred to as Jiko Pockets, consist of a bank account and a brokerage account. How Jiko Pockets work:

1. Cash enters a Pocket

2. Funds are invested in T-bills in the client’s name

3. Payments trigger instant liquidation and settlement

As a result, the firm:

• Centralized operating and reserve cash into yield-earning accounts

• Automated T-bill investment and reinvestment

• Segmented cash by purpose (payroll, subs, reserves)

• Maintained full ACH and wire payment capability

Next-step Optimization: Real-Time, On-Us Settlement with Payees On the Jiko Network

General contractors can go one step further in yield optimization, efficiency, and settlement safety when their payees open accounts at Jiko. JikoNet is a 24/7, real-time settlement network that enables instant, on-us transfers between clients of Jiko. 

When a JikoNet transaction is initiated from one party to another, Jiko facilitates an instant on-us transfer by liquidating the sender's T-bills, sweeping the proceeds to the receiver’s Pocket as cash, and investing the funds in T-bills on behalf of the receiver, all in real time. Benefits:

• Make payments around the clock

• Payments settle in real time

• Earn yield until payments settle

• Payee begins earning yield immediately

• Eliminate settlement risk at the payee’s external bank 

Get in touch

Learn more about how construction and engineering firms leverage Jiko’s solutions by connecting with the Jiko Team.