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Contractors’ perceptions of the effects of cash flow on construction projects
- Source :
- Journal of Engineering, Design and Technology. 18:308-325
- Publication Year :
- 2019
- Publisher :
- Emerald, 2019.
-
Abstract
- PurposeThis paper aims to evaluate Nigerian contractors’ perceptions regarding the effects of positive and negative cash flow during construction projects, with a view to establishing effective strategies for cash flow management.Design/methodology/approachA desktop-based literature review is used to develop a cross-sectional questionnaire survey which uses Likert items to elicit responses from construction professionals on: the reasons for cash flow problems; the impacts of negative and positive cash flow; and the potential solutions for improving cash flow on construction projects.FindingsThe study finds that delay in payments, difficulty in obtaining financial aid and inadequate budgetary control are the causes of cash flow problems during construction projects. Cumulatively, these issues result in project delays, reduced profit margins and in the worst scenarios, abandoned projects.Originality/valueThere has been limited research into the effects of positive and negative cash flows on construction projects in Nigeria and indeed, the wider geographical location of West Africa. This study addresses this observed dearth and consequently advances methods and solutions to deal with the problem of poor cash flow management in the Nigerian construction industry.
- Subjects :
- Finance
business.industry
media_common.quotation_subject
05 social sciences
0211 other engineering and technologies
General Engineering
Questionnaire
02 engineering and technology
Building and Construction
Payment
Cash flow forecasting
Likert scale
021105 building & construction
0502 economics and business
Profit margin
Cash flow
Project management
Location
business
050203 business & management
media_common
Subjects
Details
- ISSN :
- 17260531
- Volume :
- 18
- Database :
- OpenAIRE
- Journal :
- Journal of Engineering, Design and Technology
- Accession number :
- edsair.doi...........80cad4bfcff82f3310a3116596438751
- Full Text :
- https://doi.org/10.1108/jedt-04-2019-0099