Developing a cashflow forecasting model for road construction projects in Kalutara district and in districts with similar terrain in Sri Lanka.

Abstract

At present cash flow forecasting can be done construction programme or the standard curves. The method using the construction programme is tedious and time consuming. The method using the standard curves is simple and less time consuming. Hence in our study the method of standard curves is adopted. Upto now in Sri Lanka, cash flow forecasting has not been carried out for road projects. In this method standard curves are developed using data of past projects. A simple computer programme is developed to get the output very quickly. This report comes out with a best fit curve or a computer programme and an equation for cash flow forecasting where contractors cash flow for class A,B & C roads in a similar terrain can be predicted within a very short time. The required information is the estimated cost, the duration of the project, owing to similar terrain conditions. By using this method, the cash flow forecasting can be carried out quickly. In obtaining the .standard curve linear programming and method of regression was used with Lotus 123 software package and graphics and statistical analysis on a mackintosh computer. The programme listing and guidelines to use the developed programme is illustrated in the appendix. Key words; Cash flow, Estimated cost, terrain, linear programming, regression, graphics and statistical analysis .