Kaka, A P and Cheetham, D W (1997) The effect of some tendering and payment strategies on contractors' financial performance. In: Stephenson, P (ed.) Proceedings of 13th Annual ARCOM Conference, 15-17 September 1997, Cambridge, UK.
Abstract
This paper attempts to assess the effects of cash flow management on the overall profitability of construction companies. It describes a model that has been developed to simulate cash flow forecasting for individual projects. The model contains more than 50 variables but does not relate to a construction programme. This simple model is then modified to simulate the overall financial performance of a construction company by aggregating models of individual contracts. A series of tests evaluated the effects of changes in tendering and payment strategies on the amount of capital needed to run a contracting business.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | cash flow; contracting; financial planning |
| Index terms: | profitability, cash flow forecasting, financial planning, cash flow, strategy, programme, cash flow management, financial performance, construction company |
| Subjects: | economic analysis, management, financial and cost management, organization, project controls, financial management, business analysis |
| Topics: | Time Control, Business Strategy, Cost Management |
| Descriptive scope: | 2 PC |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here