Construction Cash Flow Management Practice In Selected Leading Local Construction Companies
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Date
2016-04
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Addis Ababa University
Abstract
Construction industry is a one of the most risky sectors due to high level of uncertainties
included in the nature of the construction projects. Although there are many reasons, the
deficiency of cash is one of the main factors threatening the success of the construction
projects and causing business failures. Therefore, an appropriate cash planning technique is
necessary for adequate cost control and efficient cash management while considering the risks
and uncertainties of the construction projects.
The main objective of this project therefore is, to assess the current practice of construction
cash flow management in the local construction industry. Accordingly, five leading
construction companies are selected who have the largest stake in the building construction
sector. It is tried to see the gaps in the subject matter through detail literature review and
consultation of reputed professionals in the industry.
The paper is organized in to four chapters. The first chapter talks about the introductory part
with subātopics; background, statement of the problem, research questions, objective, scope
and methodology. The second chapter discusses about the literatures review which is the
major part of the paper. The third chapter, which is responsible part to show the practice on
the local industry, contains the data collection and the discussion of findings. Finally,
conclusions and recommendations are forwarded after analyzing the literature and
international experience with the local practice. When you go through it, hopefully you find it
valuable and I think it adds a little thing in the industry by serving as a secondary data for
further research works in the area.
Key Words: Cash flow management, Cash in, Cash out, Cash flow prediction, cash deficiency.
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Keywords
Cash Flow Management, Cash In, Cash Out, Cash Flow Prediction, Cash Deficiency