Understanding Project Cash Flow
Project cash flow management is crucial for construction project success.
- Initial Payment - Upfront costs and mobilization expenses
- Monthly Flow - Regular income and expense patterns
- Profit Margins - Expected returns on investment
- Duration Impact - Time effects on project finances
Cash Flow Management
Payment Schedule
Plan milestone payments to maintain positive cash flow
Expense Tracking
Monitor and control monthly expenses
Contingency
Include buffer for unexpected costs
Profitability
Track profit margins throughout project