Abstract

AbstractCash flow impacts all aspects of the construction project implementation process. Cash shortages can lead to project failure and business bankruptcy. Researchers have studied cash flow in the context of scheduling, project delay, business failure, and forecasting. However, negative cash flow trends and patterns themselves have not been closely examined. This paper investigates negative cash flow trends and patterns and their impact on construction performance. To this end, the study reviews financial and scheduling data for 40 ongoing projects in the Dubai area and selects four projects for in-depth analysis. These projects represent the main categories of the Dubai construction industry in terms of type, budget, and business. Three elements of project cash flow are analyzed: (1) actual cash disbursements; (2) cash receipts; and (3) accumulated cash flow. Results of data analysis indicate that there was negative cash flow for 30 to 70% of project duration in each of the selected subject projects. ...

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