ABSTRACT

Researchers have repeatedly given as a major reason for investigating construction project gross cash flows, ‘that such knowledge can help prevent financial failure’. Although such knowledge is, on its own, unlikely to prevent failure, there are many benefits which accrue from monitoring and managing a contractor’s cash flow. These benefits can accrue to either the contractor or the client. It might be more reasonable to argue that knowledge of gross cash flow may lead to prevention of project failure. Certainly, it may be of considerable assistance to alerting management to problems on projects.