Shovel Ready

DEFINITION of 'Shovel Ready'

A phrase describing the status of a project that is considered to be in the advanced stages of development. Shovel-ready implies that the project can be begun by laborers and is past the planning stages.

BREAKING DOWN 'Shovel Ready'

The phrase "shovel ready" is used when referring to projects that, if given stimulus money, will have the most immediate impact on employment and the economy. While stimulus spending on shovel-ready projects is designed to help the economy, it is possible that misguided projects will be undertaken simply for the sake of spending, and that government funds could be better used elsewhere.

RELATED TERMS
  1. Shovel-Ready

    A term widely used by President Barack Obama to describe a construction ...
  2. Capital Project

    A long-term investment made in order to build upon, add or improve ...
  3. Project Management

    The planning and organization of an organization's resources ...
  4. Capital Rationing

    The act of placing restrictions on the amount of new investments ...
  5. Project Notes

    A short-term debt obligation issued to finance a project or endeavor ...
  6. Market Is Up

    A common phrase meaning the stock market (or a major market index) ...
Related Articles
  1. Managing Wealth

    Project Manager: Job Description & Average Salary

    Discover more about the specific tasks that project managers are responsible for and the average salary that can be expected in such a position.
  2. Managing Wealth

    Project Manager: Career Path & Qualifications

    Learn more about what project managers job, the qualifications necessary for the position and the most common careers for these professionals.
  3. Investing

    Capital Budgeting: The Importance Of Capital Budgeting

    Capital budgeting is a step by step process that businesses use to determine the merits of an investment project. The decision of whether to accept or deny an investment project as part of a ...
  4. Investing

    Understanding Net Present Value

    Learn how this value is used to determine the worth of a project.
  5. Investing

    Capital Budgeting: Capital Budgeting Decision Tools

    Once projects have been identified, management then begins the financial process of determining whether or not the project should be pursued. The three common capital budgeting decision tools ...
  6. Investing

    An Introduction To Capital Budgeting

    We look at three widely used valuation methods and figure out how companies justify spending.
  7. Markets

    Trading With Stage Analysis (NRG, NKE)

    Stage analysis offers market participants a powerful tool to identify current market conditions and make rapid adjustments to strategies.
  8. Markets

    10 Ways to Improve Cash Flow in Construction

    Improving cash flow in construction requires some sector-specific strategies.
  9. Markets

    Capital Budgeting

    Capital budgeting is a planning process used by companies to evaluate which large projects to invest in, and how to finance them. It is sometimes called “investment appraisal.”
  10. Personal Finance

    4 Types Of Home Renovation: Which Ones Boost Value?

    You think your updated house looks great, but potential buyers may not feel the same way.
RELATED FAQS
  1. How do you use the profitability index rule when scoping out a project?

    Understand the parameters of the profitability index rule and how this rule is used in corporate capital allocation to determine ... Read Answer >>
  2. How much debt is too much when calculating capital budgeting?

    Learn how companies determine how much debt is acceptable when funding a new project by using the net present value to estimate ... Read Answer >>
  3. What is the formula for calculating net present value (NPV) in Excel?

    Understand how net present value is used to estimate the anticipated profitability of projects or investments and how to ... Read Answer >>
  4. Why is a bank guarantee important in a long-term project contract?

    Understand what a bank guarantee is and learn why it is so important to the risk and safety of a long-term project contract Read Answer >>
  5. How do you use discounted cash flow to calculate a capital budget?

    Learn how discounted cash flows are used in creating capital budgets as a part of the net present value and internal rate ... Read Answer >>
  6. How do you calculate costs of capital when budgeting new projects?

    Discover how a company should estimate its costs of capital when budgeting for a new business project using the weighted ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center