is concerned with costs and revenues. The two aspects are drawn together for the purpose of monitoring and control.
A budget - or a construction cash flow
forecast - is an estimate of expenditures and incomes to be generated if the proposed project is to be undertaken.
Budgets are predictions and are therefore subject to accuracy constraints in respect of the techniques employed, availability of information, expertise of personnel.
However, the S-curve technique adopted by this tool is considered reasonably accurate.
Construction Cash Flow Forecast
This application is a web based software, that requires no download from the user, apart from downloading output Report. Get An Instant Estimate of Construction Cash Flow, monthly Cash In and Cash Out.
It can be considered as simple office tool that will provide a reliable estimate of cost and revenue pattern along the duration of the construction.
The Produced Forecast can help decision makers check feasibility of undertaking the project and assess financial requirements against availability of funds.
How to use
- Select the Starting and Finishing dates of the project.
- Enter the Estimated Cost of the Works
- Enter the Overheads percentage
- Enter the Profit percentage
- Enter the Retention percentage
- Submit the form by clicking the button 'Order Now'
- The program will verify validity and consistence of form data, then you will be redirected to ClickBank
- Once your payment is made you will get access to the Produced Forecast
- The Forecast can be downloaded as an image or printed.
The Produced Report
The output shall be a detailed report enhanced with graphs showing:
- Cash In S-curve and corresponding monthly amounts of estimated payments to be received from the Employer in respect of the completed portion of the construction works
- Cash Out S-curve and corresponding monthly amounts of estimated payments to be made out
- The Net Cash Flow per month
- A one month delay is assumed between cost and revenue times.
[Since the normal practice in the industry is for payment by Owner to be effected within one month from the date of contractor's submission of an application of payment]
Estimated Costs of the Work
The Contractor will incur a variety of expenditures which can be classified as follows:
- Site Operative labor: The cost is considerably in excess of wage rates.
It accounts for the Bonus system, Allowances, Insurance, non-productive time payments, sick pay, leave pay, etc.
- Materials: purchase, transportation, waste and storage cost.
- Plant: The hiring costs shall include the hire rate and transportation to and from the construction site.
The owned plant cost shall include depreciation, wear, maintenance, fuel, etc.
- Line management: heads of gangs of laborers, Foreperson, site superintendent, Site agents, etc.
- Costs incurred before undertaking the construction job, including investigation, preliminary design, estimating, etc. shall be added to overheads
Overheads are considered to be those costs which must be borne even if there is no output from the firm, such as Head Office rent, estimating, accounts.
Overheads are therefore, apportioned among the Contractor's activities and are absorbed by each activity in its costing system.
The portion allocated to the project is considered as a percentage of Other costs.
Retention - referred to as Retainage in some books - is a portion of the amounts due to the Contractor deliberately withheld until the Construction work is substantially complete to assure that contractor or subcontractor will satisfy its obligations and complete the construction works.
Profit is that surplus of income over expenditure which accrues to the Contractor over the period in which all costs of construction may be charged.
Profit percentage is calculated with cost price taken as base.
This value is calculated automatically in the above tool as a result of other inputs, and represents the sum of estimated revenues to the Contractor in respect of the undertaken construction works.
Books On Construction Cash Flow