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Impact of cash flow variation on project performance: contractors’ perspective

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Warianty tytułu
Języki publikacji
EN
Abstrakty
EN
This study aims to determine the impact of cash flow variation in Jordanian construction projects from contractors’ perspective and its relationship with project performance. An online questionnaire was developed and distributed to a selective sample. The respondents were project managers from contracting companies working in Jordan, around 340 construction companies. The sample frame was a form of non-probability sampling of 181 project managers. The collected data were analysed using the Statistical Package of the Social Sciences (SPSS) version 25. The study results showed a positive statistically significant effect at the significance level (α ≤0.05) of cash flow variation on project performance in Jordanian construction projects. In addition, respondents indicated a high level of agreement on the impact of cash flow variation on projects’ performance, with a mean of 4.01 and a standard deviation of .546. However, on the project performance dimensions’ level, Quality came first, with a mean of 4.11 and at a high level, followed by Safety, with a mean of 4.01 and at a high level, while Final Cost ranked third with a mean of 3.96 and at a high level. Finally, Project Final Duration ranked fourth with a mean of 3.95. The researchers recommended the necessity of more efforts for a better understanding of the importance of cash flow by contractors to schedule project activities correctly and efficiently to maintain a steady state of the project cash flow.
Rocznik
Strony
73--85
Opis fizyczny
Bibliogr. 35 poz., tab.
Twórcy
  • Mutah University, Applied Science Private University, Jordan
  • Mutah University, Jordan
  • Applied Science Private University, Jordan
Bibliografia
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  • Al-Joburi, K., Al-Aomar, R., & Bahri, M. (2012). Analyzing the Impact of Negative Cash Flow on Construction Performance in 2 the Dubai Area. Journal of Management in Engineering, 15(2), 1-28.
  • AL-Nassafi, N. M., (2022) The Effect of Cash Flow Variation on Project Performance: An Empirical Study from Kuwait. Journal of Asian Finance, Economics and Business, 9(3), 0053-0063.
  • Al-Subaie, A. A., Faisal, M. N., Aouni, B., & Jabeen, F. (2021). Investigating the role of leadership styles and governance on project performance in megaprojects. Polish Journal of Management Studies, 23(1), 45-58.
  • Bassioni, H. (2004). A Framework for Measuring Business Performance in Construction Contracting Organizations. Published PhD thesis. Loghborough, UK: Loughborough University.
  • Djatmiko, B. (2017). Modelling of Project Cash Flow on Construction Projects in Malang City. AIP Conference Proceedings, 1887, 020014.
  • Elazouni M. A., & Gab-Allah, A. A. (2004). Finance-based scheduling of construction project using integer programming. Journal of Construction Engineering and Management, 130(1), 15-24.
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  • Ho, D. C. P., Ahmed, S. M., Kwan, J. C., & Ming, F. Y. W. (2000). Site Safety Management in Hong Kong. Journal of Management in Engineering, 16, 34-42. doi: 10.1061/(ASCE)0742-597X(2000)16:6(34)
  • Iyer, K. C., Chaphalkar, N. B., Joshi, G. A. (2008). Understanding time delay disputes in construction contracts. International Journal of Project Management, 26(2), 174-184. doi: 10.1016/j.ijproman.2007.05.002
  • Koehn, E., & Datta, N. (2003). Quality, Environmental, and Health and Safety Management Systems for Construction Engineering. Journal of Construction Engineering and Management, 129(5), 562-569.
  • Koelmans, R. G. (2004). Project success and performance evaluation. In Proceedings of the International Platinum Conference “Platinum Adding Value”. The South African Institute of Mining and Metallurgy, Read, Swatman and Voigt (Pty) Limited.
  • Koopman, K., & Cumberlege, R. (2021). Cash flow management by contractors. IOP Conf. Series: Earth and Environmental Science, 654, 012028.
  • Liang, Y., Ashuri, B., & Li, M. (2021). Forecasting the Construction Expenditure Cash Flow for Transportation Design-Build Projects with a Case-Based Reasoning Model. Journal of Construction Engineering and Management, 147(6), 12-31.
  • Liberzon, V., & Souza Mello, B. P. (2011). Success Driven Project Management (SDPM) Approach to Project Planning and Performance Analysis. The 8th Annual PMI College of Scheduling, San Francisco.
  • Mahmoud, H., Ahmed, V., & Beheiry, S. (2021). Construc¬tion Cash Flow Risk Index. Journal of Risk and Financial Management, 14(1), 1-17.
  • Makulwasaatudom, A., Emsley, M., & Sinthawanarong, K. (2003). Critical Factors Influencing Construction Productivity in Thailand. In Second International Conference on Construction in the 21st Century (CITC-II). Sustainability and Innovation in Management and Technology. Hong Kong.
  • McInnis, J., & Collins, D. W. (2011). The effect of cash flow forecasts on accrual quality and benchmark beating. Journal of Accounting and Economics, 51(3), 219-239.
  • Michael, W. (2018). Cash flow duration and the term structure of equity returns. Journal of Financial Economics, 128(1), 486-503.
  • Moore, D., McCabe, G., & Craig, B. (2006). Introduction to the Practice of Statistics. Sixth edition. USA: W. H. Freeman and Company.
  • Parfitt, M. K., & Sanvido, V. E. (1993). Checklist of Critical Success Factors for Building Projects. Journal of Management in Engineering, 9(3), 243-249.
  • Purnus, A., & Bodea, C. N. (2015). Financial management of the construction projects: a proposed cash flow analysis model at project portfolio level. Organization, Technology and Management in Construction: An International Journal, 7(1), 1217-1227.
  • Purnus, A., & Bodea, C. N. (2016). Multi-criteria Cash Flow Analysis in Construction Projects. Procedia Engineering, 164(1), 98-105.
  • Sarrireh, M., & Tarawneh, S. (2014). Safety Concept, Value and Cost in Construction Projects in Jordan. Civil and Environmental Research, 6(5), 2224-5790.
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  • Sharifi, M., & Bagherpour, M. (2016). Optimizing Cash-Flow-at-Risk in Construction Projects: A Cost Reduction Approach. Periodica Polytechnica Civil Engineering, 60(3), 337-344.
  • Shash, A. A., & Qarra, A. A. (2018). Cash Flow Management of Construction Projects in Saudi Arabia. Project Management Journal, 49(5), 48-63. doi: 10.1177/8756972818787976
  • Sinesilassie, E. G., Tabish, S. Z. S., Jha, K. N. (2017). Critical factors affecting schedule performance: A case of Ethiopian public construction projects – engineers’ perspective. Engineering, Construction and Architectural Management, 24(5), 757-773. doi: 10.1108/ ECAM-03-2016-0062
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  • Sinesilassiea, E. G., Tabishb, S. Z. S., & Jhaa, K. N. (2017). Critical factors affecting cost performance: a case of Ethiopian public construction projects. International Journal of Construction Management, 17 (1), 24- 49. doi: 10.1061/(ASCE)CO.1943-7862.0001280
  • Sweis, G., Sweis, R., Hammad, A. A., & Shboul, A. (2008). Delays in construction projects: The case of Jordan.International Journal of Project Management, 26(6), 665-674.
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  • Windapo, A., & Cattel, K. (2013). The South African construction industry: perceptions of key challenges facing its performance, development and growth. Journal of Construction in Developing Countries, 18(2), 65-79.
  • Zayed, T., & Liu, Y. (2014). Cash flow modeling for construction projects. Engineering, Construction and Architectural Management, 21(2), 170-189.
Typ dokumentu
Bibliografia
Identyfikator YADDA
bwmeta1.element.baztech-30519578-f378-4398-8d08-aa9d3950f7c7
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