Abstract
Purpose: The aim of the study is to investigate the state of contractors’ cash flow and its influence on construction project delivery in selected states of south-south Nigeria with a view towards improving contractors’ cash flow. The study objectives are: to ascertain the influence of project characteristics on contractors’ cash flow projections for construction projects and assess the influence of contractors’ cash flow projection on project performance.
Design/methodology/approach: In line with quantitative survey approach adopted for the study, 193 copies of a structured questionnaire were administered while 130 valid responses were received, translating into a response rate of 67.4%. Data collected were analysed using descriptive statistics and Kruskal Wallis. Findings indicate that the top three project characteristics that had influence on cash flow are procurement method, project duration, and
client type while project type was rated the least.
Findings: Findings also reveal that “on schedule delivery of projects” was the top rated, followed by “on budget delivery of projects”, and “projects delivered ahead of schedule”. However, “projects delivered at an underrun” was the least rated. Findings also indicate that the influence of contractor’s cash flow on 3 of the 6 project delivery indicators were not significant as they did not meet the 3-point threshold. The study also concludes that the top three project characteristics that have influence on contractor’s cash flow are procurement method (in terms of traditional, design and build, project management etc.), project duration, and client type (public or corporate).
Practical implications: The study recommends among others that government should enact stringent laws and guidelines to punish parties to a contract that defaults on the issue of funding of projects. This will address delay in project execution and other risks that could hamper project delivery.
Originality/value: The study established that the top three project characteristics that have influence on contractor’s cash flow are procurement method (in terms of traditional, design and build, project management etc.), project duration, and client type (public or corporate); and that good cash flow management of projects has the highest impact on timely delivery of projects.
Design/methodology/approach: In line with quantitative survey approach adopted for the study, 193 copies of a structured questionnaire were administered while 130 valid responses were received, translating into a response rate of 67.4%. Data collected were analysed using descriptive statistics and Kruskal Wallis. Findings indicate that the top three project characteristics that had influence on cash flow are procurement method, project duration, and
client type while project type was rated the least.
Findings: Findings also reveal that “on schedule delivery of projects” was the top rated, followed by “on budget delivery of projects”, and “projects delivered ahead of schedule”. However, “projects delivered at an underrun” was the least rated. Findings also indicate that the influence of contractor’s cash flow on 3 of the 6 project delivery indicators were not significant as they did not meet the 3-point threshold. The study also concludes that the top three project characteristics that have influence on contractor’s cash flow are procurement method (in terms of traditional, design and build, project management etc.), project duration, and client type (public or corporate).
Practical implications: The study recommends among others that government should enact stringent laws and guidelines to punish parties to a contract that defaults on the issue of funding of projects. This will address delay in project execution and other risks that could hamper project delivery.
Originality/value: The study established that the top three project characteristics that have influence on contractor’s cash flow are procurement method (in terms of traditional, design and build, project management etc.), project duration, and client type (public or corporate); and that good cash flow management of projects has the highest impact on timely delivery of projects.
| Original language | English |
|---|---|
| Pages (from-to) | 74-91 |
| Number of pages | 18 |
| Journal | Journal of Contemporary Research in the Built Environment |
| Volume | 3 |
| Issue number | 2 |
| Publication status | Published - 30 Sept 2019 |
Keywords
- Cash flow
- project characteristics
- Project performance
- Nigeria