SUNConferences, 27th Annual Conference of the SA Institute for Industrial Engineering

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Managing contractor cash flow constraints during projects
Barend Daniel Ben Peters, Marius Schoeman

Last modified: 2016-10-11


Construction projects are complex by nature, and when projects are negatively affected due to contractor cash flow issues and concerns, new challenges arise which need to be managed closely.  This results in additional administration burdens which all stakeholders rather wish to avoid.

The importance of project cash flow management is known, but to manage cash constrained contractors provide additional challenges and risks to projects.  Contractors cannot survive in the competitive construction industry without effective cash flow management (Yaqiong, Tarek & Shujing 2009). Contractor cash flow issues have a significant effect on many of the key parameters and metrics used to determine project success or failure.


Project Management