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About Contractor, S Cash Flow
Design changes on construction projects can significantly impact contractors' cash flow in several ways: 1) Cost overruns from design changes, which the study found accounted for 50% of total cost overruns on projects. Most of these overruns occurred in the later stages of projects. 2) Design changes often require contractors to seek additional interim financing beyond what was originally planned, sometimes at higher interest rates. This reduces their profit margins. 3) The impact of design changes on cash flow was found to be more significant for smaller contractors (M3 grade) than larger ones (M1 and M2 grade). 4) Contractors need to consider the potential need for additional financing when design changes occur and incorporate
Detailed Information
| Author: | ['vihangimadu'] |
|---|---|
| Publication Year: | 2013 |
| Pages: | 9 |
| Language: | English |
| Format: | |
| Price: | FREE |
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