It utilizes each participant’s expertise and resources so that the required business objectives can be met or exceeded (Bennett & Jayes, 1998). Cash flow analysis can refer to both day-to-day analysis (short term) or economic forecasting (long-term). Before a contract begins issues such as plant ownership, labour, subcontractors, materials, etc need to be discussed and the right mix found for each project. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on the UKDiss.com website then please: Our academic writing and marking services can help you! Topic:Construction Economics and finance. The UK Government’s policy has been to provide a fiscal stimulus by increasing spending on large public projects so as to inject money into the economy which will filter down through all sectors (McFall, 2008). As contractors have to wait a number of months before being payed for completed work, this places increased pressure on credit facilities that they have agreed with banks, sub-contractors, suppliers, etc. Both Whitten (2009) and Scully (2009) argue the point that below cost tendering is unsustainable and will increase the risk of contractors facing insolvency. 0000004722 00000 n The benefits of partnering can be applied to co-contracting (main contractor-sub contractor) and supply chain integration (contractor-supplier), (Edum-Fotwe & McCaffer, 1999). Tyreman on the other hand draws attention to the fact that the construction industry is inherently mis-trusting and while benefits do exist he doubts whether it will be fully supported within the construction industry. endstream endobj 73 0 obj<> endobj 74 0 obj<> endobj 75 0 obj<> endobj 76 0 obj<> endobj 77 0 obj<> endobj 78 0 obj<> endobj 79 0 obj<>stream As discussed by Myers (2008) business fluctuations have been occurring since the start of business and while they are complicated and rely on a number of variables they can help to provide a company with the potential to forecast market conditions and thus position itself accordingly. Do you have a 2:1 degree or higher? ��i8��x���/�G{��C0�;)��'E]ζ�G%�!f�� %nS"���n�GG��[�-��XYI6���� Zl�UgJ�J���&�7)՝.��x��dPa��X��u���vμỈ��6E6��x�?SvMj��Iv9σ 10MONDAY2020 can only be used on orders that are under 14 days delivery. If you need assistance with writing your essay, our professional essay writing service is here to help! EduRev, the Education Revolution! xref While the public sector may be susceptible to mal-practice, construction companies know that they will be impartially assessed and receive feedback. Also this keeps the company name in circulation and also to hold onto valued staff that might otherwise have to be made redundant. @ı>S� ��0�`�Q��=c���)ׯ:���0�×A���\��V^�� ���� The last three methods will bring in early money but must be done before submitting the priced bills (Cooke and Williams, 2009). 0000003698 00000 n Subject:Accounting. CONSTRUCTION ECONOMICS. 65 0 obj <> endobj 0000034894 00000 n Topic:Construction Economics and Finance. Construction is experiencing particular suffering as it relies on large capital expenditure to finance projects and the unavailability of a steady cash flow has resulted in many companies being forced into bankruptcy despite making a profit. 0000001036 00000 n +�Dy����~ƻ�KT.�s�5��N��i"3����BA�8�MG= 0000038070 00000 n Construction Economics and Finance. 0000001639 00000 n Volume: 10 pages. 0000005487 00000 n 0000006441 00000 n Construction Free resources to assist you with your university studies! The logical relation between high inflation which causes a rise in borrowing costs and a reduction in construction investment and thus a fall in the construction cycle is shown below in Figure 2.2 (Ren & Lin 1996). 0000002382 00000 n Format: MLA. Disclaimer: This work has been submitted by a university student. The economic downturn while unfortunate is real life problem that needs to be managed and controlled by construction companies. 0000009183 00000 n We're here to answer any questions you have about our services. 0000021216 00000 n As suppliers account for such a high percentage of building costs their involvement at an early stage should be welcomed as they can contribute new ideas, products or processes (Cartlidge, 2002). Construction Economics & Finance (Web) Syllabus; Co-ordinated by : IIT Guwahati; Available from : 2013-09-13. 0000006695 00000 n 0000004832 00000 n 0000004388 00000 n Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Methods to improve the cash flow are described below at the different stages of a contract but in general firms need effective financial planning and control to monitor its position. 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