A stochastic model of cash flow forecasting considering delays in owners’ payments

Andalib, Reza; Hoseini, Abdollah; Gatmiri, Behrouz

doi:10.1080/01446193.2018.1433309

Cited by 21 publications

(14 citation statements)

References 38 publications

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“…Business-and Work-Environment-Related Factors 6-Economical environment [20,21] 7-Social environment [22][23][24] 8-Political environment [9,16,25] 9-Statutory approvals environment [26,27] III. Client-Related Factors 10-Influence of client/client's representative [25,28] 11-Client's experience in construction field [16,25] 12-Mechanism of financial payments [26,29,30]…”

Section: Project-related Factorsmentioning

confidence: 99%

Critical Success Factors for Sustainable Construction Project Management

Gündüz

Almuajebh

2020

Sustainability

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It is necessary to identify critical success factors (CSFs) that affect the construction process. This paper’s aim is to define the CSFs considering views of all construction project stakeholders. The contribution of this paper is to categorize project success factors into categories and quantify the effect of each category taking into account the effect of all stakeholders on project efficiency and progress. To achieve this objective, a comprehensive literature review was carried out. After literature review, 40 success factors were compiled into seven categories: project-related factors, company- and work-related factors, client-related factors, project management factors, design-team-related factors, contractor-related factors, project-manager-related factors. Consequently, a survey including these listed success factors was prepared and distributed to various experts in the construction field to be ranked; 148 responses were received. Employing the Relative Importance Index (RII) and traditional Analytic Hierarchy Process (AHP) method with Saaty random index that prioritizes these CSFs, the collected data were analyzed after receiving responses. Even though there were disagreements in stakeholders’ views and their goals, significant areas have been identified as project financial issues, managerial aspects, and authorities’ approval mechanism. The outcome of this paper would be used by construction industry professionals to support, evaluate, and measure the success of projects for better allocation of resources.

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Section: Project-related Factorsmentioning

confidence: 99%

Critical Success Factors for Sustainable Construction Project Management

Gündüz

Almuajebh

2020

Sustainability

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“…The principal obligation of the client is to make the agreed payment to the contractor based on performance (Supardi et al, 2010). However, "early delivery and late payment" has become habitual and routine, especially in the construction industry (Andalib et al, 2018). Even though payment obligations of the client are expressly stated in the standard forms of contract, they are usually misunderstood or not followed, thereby adversely affecting both the project and the contractor (Abotaleb and El-adaway, 2017).…”

Section: Literature Review 21 Management Of Delayed Payments In Government Building Construction Projects By Partiesmentioning

confidence: 99%

Streamlining the management of payment delays: the case of Sri Lankan Government building construction projects

Perera

Dewagoda

2021

JFMPC

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Purpose Delayed payments have been long standing, pressing issue in construction projects, especially in Government-funded construction projects. The root causes and the consequences of delayed payments must be identified before implementing strategies to mitigate the consequences of such delayed payments. However, these causes and consequences and the parties responsible for managing the delayed payments have not been identified so far. Therefore, the purpose of this study is to investigate the management of payment delays in Government-funded construction projects. Design/methodology/approach The study used a mixed approach comprising four case studies and a questionnaire survey. The empirical data collected from the case studies and the questionnaire survey were analysed using manual content analysis and mean rating, respectively. Findings The study identified the most significant causes and the most significant consequences of delayed payments that occur in Government-funded construction projects. It also revealed the strategies that clients, consultants, contractors and other parties can adopt to mitigate the adverse consequences of such delayed payments. Originality/value This study identified the most significant causes of delayed payments in Government-funded construction projects, the most significant consequences of such delayed payments and the most suitable strategies the clients, consultants and contractors can adopt to mitigate the consequences of such delayed payments. Thus, this study supports streamlining the management of payment delays in Government construction projects and identifies the roles that different parties must play in managing payment delays in Government building projects, which is an under-researched area.

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“…Other authors who were not focused on viability have underscored the importance of BOQ as having the ability to reveal and evaluate a project cash flow and pricing strategy before the commencement of construction activities through its priced BOQ, this is referred to as projects cash flow forecast (Andalib et al, 2018;Shash and Qarra, 2018). This fact was implied by Aziz 2013, Odeyinka et al, (2013 and Brook The BOQ which can be referred to as an individual project elemental financial plan document, enables all contractors tender for a contract, price on exactly the same information.…”

Section: Introductionmentioning

confidence: 99%

Evaluation of price distribution of building elements in the Bills of Quantities of Locally Owned Construction Firms in South West Nigeria

Oladimeji

2022

LAUJOCES

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It is important to diagnose locally owned construction firms (LOCOFs) cash flow and hence their financial health through assessment of percentage cost allocation to various work items in the bills of quantities of new building projects. To this end, this paper analysed locally owned construction firms’ priced bill of quantities (BOQ) of awarded building projects in order to demonstrate the appropriateness of their cash flow management plan and techniques. This is with an aim of improving the performance of local firms. Sixty BOQ of new building projects awarded to various LOCOFs in year 2007 to 2015 were assessed. Cost allocated to major early and finishing building element work stages were identified, analysed and relevant inferences bothering on firms’ financial plan and cash flow management techniques were discussed. The result showed that average percentage cost allocations for building preliminaries, substructure, frame structure, roof and finishes arranged in descending order had the highest cost allocation to building substructure (20.35%), finishes (12.98%), frame structure (12.31%), roof (12.08%) and preliminaries (2.85%). Also, 24 of the 60 BOQ had more than 50% of the contract sum allocated to building projects elements’ early stages of work. This cash receipt and payment early advantage can be well utilised by applying a well thought out cash flow management plan and technique that will boost LOCOFs’ working capital.

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A stochastic model of cash flow forecasting considering delays in owners’ payments

Cited by 21 publications

References 38 publications

Critical Success Factors for Sustainable Construction Project Management

Critical Success Factors for Sustainable Construction Project Management

Streamlining the management of payment delays: the case of Sri Lankan Government building construction projects

Evaluation of price distribution of building elements in the Bills of Quantities of Locally Owned Construction Firms in South West Nigeria

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