EVALUATION OF CASH FLOW PLANNING PRACTICE FOR BUILDING PROJECT DELIVERY IN ABUJA, NIGERIA

Abstract

The research assesses the distribution of cash flow planning which is necessary for adequate cost control and
effective cash management with the objectives of examining the existing cash flow planning concept,
determine the factors hindering cash flow planning techniques and the strategies that will enhance the steady
flow of cash to the contractors in Abuja. A field survey was conducted with the use of structural
questionnaire, 113 questionnaires were distributed out of which 78 were returned, 55 not returned. Relative
important index (RII) was used to analyze the data collected from the respondents (professionals). The
research observed that the existing cash flow planning concept are mostly cash flow prediction and project
schedule information which are rated 1st and 2nd with the corresponding RII values of 0.77 and 0.78.
Estimating error and problem with supplier are the two factors hindering efficient cash flow planning format
to the contractors in Abuja rated 1st and 2nd with the RII of 0.81 and 0.80. The research also found out the
many contractors in Abuja uses accuracy of estimate at tender stage and proffer cash flow management as
the strategies that enhance cash flow in Abuja. The research concludes that appropriate cash planning is
necessary for adequate cost control and efficient management include considering the risks and uncertainties
of the construction project.