Abdulla Galadari - Deciding the Way Forward of Construction Contracts During Cash Flow Deficits

Document created by Abdulla Galadari on Aug 22, 2014
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  Publication Details (including relevant citation   information):

  Al-Yousuf, A., Al-Ali, A., Ustadi, A., Galadari, A. (2009)   "Deciding the Way Forward of Construction Contracts During Cash   Flow Deficits," Proceedings of the 2009 International   Conference on Financial Theory and Engineering, 28 - 29   December, Dubai, United Arab Emirates.


  When a developer is building different construction projects   simultaneously, cash flow management is very important. If the   actual cash flow has been reduced than expected, the developer   may need to decide which of the projects need to proceed and   which need to be either suspended or terminated. This paper   builds a financial model that evaluates the various construction   projects based on the status of the project technically and   financially to determine the decision path that needs to be   undertaken for each project, based on a multivariate approach   from the expected cash inflow, priority, likelihood, and time of   construction. The model builds a chain of possible outcomes,   where a project may be temporarily put on hold for a while and   then resumed by cash inflow expected from previous projects.

  Address (URL): http://sites.google.com/site/yourheartspeaks/Deciding_Way_Forward.pdf