Cash flow analysis in projects
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This file will help you understand the cash flow on any project and how cash flow can affect the success of any construction project.
Explanation of Project Cash Flow (S-Curve)
Cash Flow Analysis: In cash flow forecasting is the forecasting of both cash and cash from a construction project.
Contract provisions affecting cash:
1-It is usually kept by the owner a percentage (%) of each payment made according to the terms of the contract.
2- It may be kept for retention by the client until the work obtains a final certification from the authorities, and the client accepts the project.
Then final payment is made to the contractor, including cumulative retention.
1- After completing the work and addressing all the deficiencies, the client makes a formal written acceptance of the project and the contractor submits his request for final payment.
2 – Under a lump sum contract, the final payment is the final contract price less the total of all previous bill payments made.
3- In all cases, the final payment by the customer includes all retentions made by him.