This PDF will help you in understanding cash flow in any project and how can cash flow affect the success of any construction project. Download Cash Flow analysis PDF free.
-Cash flow analysis: In Cash flow forecasting is the forecast of both cash in & cash out of the construction project.
1-It’s An percentage (%) of each progress payment is usually retained by the owner in accordance with the terms of the contract.
2-The retention may be held by the client until the work receives final certification by the authorities, the client accepts the project.
3-Final payment is then made to the contractor, including cumulative retention.
1-After the work has been done & all deficiencies remedied, the client makes formal written acceptance of the project & the contractor presents his application for final payment.
2-Under a lump-sum contract, the final payment is the final contract price less the total of all previous payment invoice made.
3-In all cases, final payment by the client includes all retention that has been held by him.