Odeyinka, H A and Lowe, J G (2001) An evaluation of methodological issues for assessing risk impacts on construction cash flow forecast. In: Akintoye, A (ed.) Proceedings of 17th Annual ARCOM Conference, 5-7 September 2001, Salford, UK.
Abstract
Cash flow forecast is of great importance to construction contractors to prevent unsavoury consequences of liquidation and bankruptcy. Researchers over the last two decades have employed forecasting methodologies, which utilize the various elements of the cash flow equation. However, in spite of the quantity of research efforts, an accurate forecast of construction cash flow has been a difficult issue due to risks and uncertainties inherent in construction projects. This paper reports part of an on-going research concerned with assessing the impacts of risks and uncertainties on construction cash flow forecast. It attempts to clarify the terminological issues surrounding construction cash flow and use that as a basis to develop a construction cash flow concept. In addition, based on a literature review of previous researches in cash flow modelling, a conceptual classification of cash flow forecasting methodologies is developed. An evaluation of these methodologies assisted in developing a framework for assessing the impacts of risk on construction cash flow profile.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | cash flow; forecasting; risk; uncertainty |
| Index terms: | cash flow, forecasting, literature review, risk impact, construction project, methodology, construction contractor, liquidation, bankruptcy, modelling, cash flow forecasting |
| Subjects: | production management, research methods, financial management, financial analysis, environmental hazards, practitioner, economic analysis, prediction and forecasting, financial and cost management, analytical methods, data analysis and analytics |
| Topics: | Research Practice, Project Management, Engineering Principles, Business Strategy, Cost Management, Sustainability, Roles and Professions |
| Descriptive scope: | 4 PCTA |
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