Cash Flow Analysis for Construction Projects

by Jeffrey C Kadlowec, Registered Architect Adequate cash flow and financial planning are required for construction projects and the long-term success of development organizations. Lack of assets will prevent growth, have adverse effects on operations, and remains the leading cause of business failure (Sunagar 2022). For general contractors to perform work, they must first obtain materials and mobilize labor, this comes at a substantial upfront cost. Timely invoicing of owners and on-time payment to subcontractors and suppliers is essential to avoid costly delays and project failure. Accurate projections of the flow of money based on production and consumption rates becomes.

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