Project Cash Flow

Dr. Mohammad S. El-Mashaleh

Construction Project Management

Dept. of Civil Eng.
Dr. Mohammad El-Mashaleh
Hashemite University 1

Cash flow projection

It is the projection of income and

expense during the life of the project

Contractors need to balance these two

components (i.e., income and expense)
to ensure that they have enough funds
to be able to finance operations

Construction Project Management

Dept. of Civil Eng.
Dr. Mohammad El-Mashaleh
Hashemite University 2

1
 Construction contracts usually require
contractors to submit the s-curve

The s-curve is a graphical presentation

of the cumulative expenditure over time

It displays the outflow of monies (i.e.,

expense flow) for both direct and
indirect costs

Construction Project Management

Dept. of Civil Eng.
Dr. Mohammad El-Mashaleh
Hashemite University 3

Example 1

Construction Project Management

Dept. of Civil Eng.
Dr. Mohammad El-Mashaleh
Hashemite University 4

2
 Cash flow to the contractor

The flow of money from the employer to

the contractor is in the form of interim
(progress) payments

Usually, the contractor makes monthly

application to the employer for interim
payment based on the actual amount of
work executed in the field
Construction Project Management
Dept. of Civil Eng.
Dr. Mohammad El-Mashaleh
Hashemite University 5

Upon verification, the engineer issues

an interim payment certificate within the
period specified in the contract (i.e.,
within 28 days in FIDIC contracts)

Consequently, the employer makes

payment to the contractor within the
period specified in the contract (i.e., 56
in FIDIC contracts)

However, employers usually retain a

certain % from every interim payment
(i.e., 10% in FIDIC contracts)
Construction Project Management
Dept. of Civil Eng.
Dr. Mohammad El-Mashaleh
Hashemite University 6

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 Example 2

Construction Project Management

Dept. of Civil Eng.
Dr. Mohammad El-Mashaleh
Hashemite University 7

Examples 3 and 4

Construction Project Management

Dept. of Civil Eng.
Dr. Mohammad El-Mashaleh
Hashemite University 8