Cash flow forecasting model using moving weights of cost categories for general contractor on jobsite

This research introduces the development of a project-level cash flow forecasting model based on planned earned value and cost from a general contractor's view on a jobsite. Previous most models have been developed to assist contractors in their pretender or planning stage cash flow forecasts. However, this model is designed to forecast cash flow of the construction stage for general contractors on jobsite. The key to cash flow forecasting at the project level is how to build a cash-out model. The basic concept is to use moving weights of cost categories in a budget. The cost categories are classified to compile resources with almost the same time lags. Time lag, as used here, is based on contracting payment conditions and credit times given by suppliers or venders. For cash-in, net planned monthly-earned values are simply transferred to the cash-in forecast, to be applied there with billing time and retention money. Validation of the model involves applying data for four projects in progress. These include one building project and three civil projects, with data compiled over duration of 12 months (from Sep. 2000 to Aug. 2001) for each project. Comparative analyses of the simulation results based on the proposed model and results based on existing models are performed. The contribution of the dissertation is that the proposed model is more accurate, flexible and simple than traditional method for construction jobsite employee who is not oriented financial knowledge.