Cash Flow Forecasting Model for General Contractors Using Moving Weights of Cost Categories

A financial decision making framework for construction projects based on 5D Building Information Modeling (BIM)

“…Managing and forecasting the cash inflows and outflows of a project is crucial to ensure the success of the project and the contractor (Park et al, 2005). More than 60% of construction contractor failures are mainly due to economic factors (Russell and Jaselskis, 1992).…”

Artificial intelligence approaches to achieve strategic control over project cash flows

“…Chen et al [6] recommended an extended cost-schedule integration model influenced by more detailed payment conditions, including differential payment lags, components for materials and labor, and payment frequency. Park et al [31] adopted moving weights of cost categories to build a realistic cash-out model and transferred net planned monthly earned values as cash-in simply to forecast cash flow that reflects timelagged impacts during a construction phase. Khosrowshahi and Kaka [21] developed a model that integrates modules of an exponent and two fourth-degree polynomials to forecast and manage project cash flow.…”

Contractor’s Financial Estimation based on Owner Payment Histories

“…Some studies that discuss changes in cash inflow are Park et al (2005), Chen et al (2005), Kaka and Price (1991) and Kaka (1996). The model by Park et al (2005) allows contractors to incorporate the time lag between expenditure and payment of a related cost item.…”

“…The model by Park et al (2005) allows contractors to incorporate the time lag between expenditure and payment of a related cost item. Chen et al (2005) recommend the inclusion of more detailed payment conditions, and differential payment lags and frequency in order to increase the accuracy of cost-schedule integrated cash flow forecasting techniques.…”