Assessing the Factors Influencing Cashflow Management in Project Delivery in Kaduna Metropolis, Nigeria

Abstract

The aim of the study is to Assess the state of contractors’ cash flow and its drivers influencing on construction project delivery in Kaduna, Nigeria with a view towards improving contractors’ cash flow. The study’s objectives are: to identify the factors influencing cash flow management on construction projects delivery and to examine the influence of contractors’ cash flow management on Construction project delivery. A questionnaire was prepared to identify the above-mentioned factors. A total of 35 responses were collected from contractors and desired results were obtained and conclusions were made. The results of the questionnaire indicated that the majority of the contractors who encountered failures in their annual project contracts, attributable to poor cash flow management and forecasting, are those contractors who did not perform cash flow analysis prior to submitting bids for projects. The survey showed that in construction industry, material management plays an important role in cash flow management followed by procurement and inventory. The survey also showed that the major sources of capital are the credit, the company assets, the advance payment and the progress payment. Inventory management is the best suited example for cash flow management in a project.