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How would you create a cashflow forecast?
Need to know the construction programme and contract value
Then would use a Cashflow computer programme
Or by attributing costs to a construction programme.
If you didn’t have the software, how would you create it?
Split works into packages as shown on contract programme and include individual s-curves for each package.
Your construction budget was £2.5m and proposed construction period was 25 weeks; that’s £100,000 per week. How do you substantiate this being realistic?
Not very realistic as you will pay for work done.In reality this will form an s-curve and payments will be irregular.
What’s the benefit of cashflow forecast?
Allows employer to gain an understanding of financial requirements over the duration of the project duration.
Also acts as a check against valuations – early indication of financial difficulties
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