ABSTRACT
A construction firm's financial standing is affected by retention, undervaluation, delay in payments, interest charges and a host of other economic and financial variables (Hillebrandt and Cannon, 1990). Construction businesses constantly need funds to finance their diverse activities. The long-term survival and growth of a company depend not only upon the selection of the right projects, but also on the company's ability to raise the necessary finance to fund them. Companies need capital to finance their investment projects. Short-term projects and investment in current assets are typically financed with short-term credits such as trade debt, short-term lines of credit, and cash generated from operations. However, these funding sources are not always sufficient or adequate. Long-term projects such as the expansion of the company's activities or the addition of new product lines require more permanent sources of capital such as debentures, bonds and leases.
