What is it about?
This paper evaluates the perceptions of local construction firms’ practice of cash flow management techniques identified in construction literature with the aim of drawing out relevant inferences that will improve local construction firms’ profit and cash flow.
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Why is it important?
There is the need for local construction firms to maximize their working capital by assigning their profit markup based on the balanced use of cost item based and front–loading profit markup distribution in presenting a fair bid that will be ethically acceptable and highly profitable. In addition, firms can maximize the use of trade credit for material and labour supply using paid when paid clause to achieve highly liquid firms in spite of the high interest rates charged on loans by banks for construction works.
Perspectives
I think this article will make construction contractors look out for easily accessible credit facilities that will boost their construction output. It opens up great opportunity for specialized sub contracting of material, labour, plant and equipment supply for construction work in a win - win relationship. A synergy arrangement can exist between construction contracting firm forming alliance with other sub contracting firm in an assured relationship of regularly obtaining goods and services for construction work and pay back immediately payment is made by clients for construction work done in stages or in whole.
Dr. Olubimbola Oladimeji
Universidade Federal do Rio de Janeiro
Read the Original
This page is a summary of: Cash flow management techniques practices of local firms in Nigeria, International Journal of Construction Management, November 2018, Taylor & Francis,
DOI: 10.1080/15623599.2018.1541705.
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