The cash flow is most essential element of the successful project completion, particularly within the infrastructure construction industry. The cash flow determines a contractor’s ability to deliver projects on time and within budget. The challenges contractors face, due to delayed payments, retention money, performance bank guarantees and stringent contract conditions, often lead to negative cash flow and project delays. What is needed is pragmatic contract terms, timely payments and regular monitoring of cash flow as benchmarks for project progress. Adopting these practices fosters timely project delivery and strengthens client–contractor relationships.

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Cash Flow—The Cardinal Factor for Project Completion

  • Sharat Sharma

摘要

The cash flow is most essential element of the successful project completion, particularly within the infrastructure construction industry. The cash flow determines a contractor’s ability to deliver projects on time and within budget. The challenges contractors face, due to delayed payments, retention money, performance bank guarantees and stringent contract conditions, often lead to negative cash flow and project delays. What is needed is pragmatic contract terms, timely payments and regular monitoring of cash flow as benchmarks for project progress. Adopting these practices fosters timely project delivery and strengthens client–contractor relationships.