Project and portfolio cash flow development

Efficient cash flow management is vital for the survival and long-term success of every company. The nature of the construction business often forces contractors to work with less internal financing and trust that customer payments will cover project expenses. Transparency of the cash flow allows the contractor to keep track of the progress and cash balance, foresee financial complications, and execute strategies to improve the cash and minimize the negative impact from project disruptions. The aim of the study was to investigate the current and preferred future state of cash flow management in the case company and develop a proposal on the way forward for improving cash flow transparency during the execution phase in projects. It was discovered that the company has insufficient data in its systems to automatize the generation of cash flows fully. Therefore, suggestions for future research and system integrations to improve efficiency were part of the results. However, cash flow management is valuable already today in the case company. Thus, a cash flow template based on the available data in the systems was also developed