الفهرس | Only 14 pages are availabe for public view |
Abstract Cash issues are various and complicated. The contractor starts with a forecast for the flow of the cash through the lifetime of the project. Cash shortages can lead to project failure and business bankruptcy. Researchers have studied cash flow in the context of project delay, business failure, and forecasting. However, negative cash flow trends and patterns themselves have not been closely examined despite the amount, duration and distribution of negative cash flow are critical factors in construction performance. Unless contractors manage to procure adequate cash to keep construction work running according to schedule, the pace of work will definitely be relaxed. Finance-based scheduling provides the needed control through devising the minimum-duration project schedule, which corresponds to the credit limit of the minimum interest rate. Thus, finance-based scheduling was used as a tool to minimize project indirect costs, financing costs, and consequently maximize the project profit. Therefore, always keeping scheduled activities in balance with available cash is a potential contribution to producing realistic schedules. This study investigates cash flow management and profit optimization by reducing the extent and amount of negative cash flow on the construction projects and completes them as scheduled by rescheduling construction activities on the basis of the minimum cash flow availability. This system is a quantitative system design and attempts to minimize negative cash to avoid a budget deficit without delaying project completion, thereby helping contractors release financial pressures on activity execution. This is done by attempting minimizing cash overdrafts in case of borrowing. Hence, maximum profit can be attained. This necessitates an appropriate cash flow management strategy. |