Cash flow system development framework within integrated project delivery (IPD) using BIM tools

The construction industry is evolving in how it incorporates construction teams into the planning and design phases, where integrated delivery methods have attracted recent interest due to their various advantages. This paper introduces a new integrated delivery approach, referred to as integrated trade delivery (ITD), that further expands the principles of integrated project delivery (IPD). The ITD model goes beyond IPD by mandating the integration of major trade partners and/or subcontractors to the multiparty agreement and as part of the shared risk and reward framework. Although existing research provided valuable insights into IPD, this paper proposes and explores ITD as a new project delivery method. First, 20 drivers and 20 barriers of ITD were identified. Second, a survey was distributed to assess the likelihood of occurrence and the relative impact of the drivers and barriers. Third, the criticality of each driver and barrier was quantified. Fourth, a statistical analysis was conducted to compare the alignments among various project participant groups. The results showed that the top five drivers to ITD are (1) competent project participants through qualification-based selection; (2) expertise, knowledge, and skill sharing; (3) improved constructability; (4) early involvement of key project participants; and (5) positive working environment and team behavior. The findings also indicated that the top five barriers to ITD are: (1) opposing goals and interests between project participants; (2) uncertainty in project planning and design; (3) financial and cash flow risks due to huge investments and late profits; (4) lack of appropriate distribution of incentive and compensation plans; and (5) involvement of several participants. This study adds to the body of knowledge by being the first research to propose and explore the ITD concept and analyze its drivers and barriers. The findings are expected to inspire further research and practice in this novel area of ITD.

PurposeDefective stakeholder management has frequently resulted in conflicts and partial failures. Integrated project delivery (IPD) and team integration provides opportunities for organizations to achieve more than they could on their own. The purpose of this study is to analyze the level and challenges of team integration. In addition, study tries to recognize the cornerstones for creating integrated teams in construction projects.Design/methodology/approachThis paper discusses the characteristics and level of team integration in a construction project, but the main purpose is to derive the cornerstones for creating integrated teams. Results are derived from the analysis of current literature and an empirical case study.FindingsThis paper describes the 12 characteristics of an integrated project team. In addition, the cornerstones for creating integrated teams were recognized as the early involvement and assessment of stakeholders, continuous communication and interaction, cultural change, and making the IPD process well known.Practical implicationsThe construction industry is aware of the need to improve control over its delivery processes. In addition, the customers are aware of waste and have started to demand more value. Because IPD and team integration supports the controlling over delivery processes and enables the more efficient value creation, these are extensive issues in developing construction industry.Originality/valueTeam integration is an important part of value creation. Limited research attention has been directed at what the level of integration is compared with the characteristics of integration. This paper also advances team integration research by identifying the cornerstones for integration.

[Image omitted: See PDF.]How should an owner organize a capital project in order to achieve successful outcomes? Can the organization prepare itself to deliver the results it seeks?I have recently been involved as a facilitator and editor for a white paper on how owners might organize themselves to achieve success on major healthcare capital projects with the Academy for Healthcare Infrastructure, which is a program of the National Institute of the Building Sciences (NIBS) in the United States. The project involved interviewing 12 expert participants and producing a document with their consensus opinions about organizing projects. The white paper was presented in January at the annual NIBS Building Innovation conference in Washington, DC ([Hamilton, 2016]), and is available for free download at http://c.ymcdn.com/sites/www.nibs.org/resource/resmgr/AHI/AHI_WhitePaperTeam1.pdfThe 12 participants were recognized North American industry leaders, including representatives of public, private, and governmental healthcare systems, along with architects, engineers, contractors, and construction managers (CMs). These experienced expert professionals were consistent in their responses, leading to a consensus document that identified 12 guiding principles for project organization.Twelve PrinciplesIn many ways, the consensus principles they developed were predictable. They began with requiring vision on the part of the owner to be widely shared and followed with the need for clear, well-documented objectives. They emphasized the need for qualified, experienced internal and external staff together with a stable of prequalified consultants and contractors able to work within a hierarchical reporting structure. The group believed the owner should have standards that simplify decisions and do not stifle innovation. They insisted upon timely, effective communication as well as constant attention to cost and schedule control. Recognizing that these major capital projects involve people and personal relationships, they declared that everyone should have direct performance incentives and decisions ought to be addressed with all relevant persons in the room. Ultimately, they concluded that trust among the internal and external team members and between their organizations was a key to success.These are all commendable principles from which owners might benefit. There can be no doubt that a team of qualified, experienced professionals who work well collaboratively and communicate effectively in a context of trust can succeed. Following the owner's clear, shared vision, meeting the explicit objectives, and following established standards as guidelines mean the project may deliver what is expected. Success is not possible without careful monitoring of budget and schedule, based on accurate reporting and thoughtful course correction. These are common sense principles upon which all were agreed. In addition to the 12 consensus principles, some other material was discussed in which variation was identified.There can be no doubt that a team of qualified, experienced professionals who work well collaboratively and communicate effectively in a context of trust can succeed.Multiple Delivery Models Can Be EffectiveThe interview participants referenced multiple project delivery models. Different delivery models have been successful for large and small projects, private or public. The participants mentioned experience with traditional design-bid-build projects but also mentioned negotiated bid, CM at risk, design-build, and the Public-Private Partnership process. There was mention of two versions of integrated project delivery (IPD) including a contracting structure linking all of the partners, and an IPD-like structure done under a more traditional hub of contractual relationships with the owner at the center. The Department of Defense uses design-build, design-bid-build, early contractor involvement, integrated design-build-initial outfitting, and integrated design-bid-build (IDBB), among other models. …

Purpose This paper presents an in-depth case study on an agile hybrid project delivery approach in the context of a complex building design problem. The study aims to understand and evaluate the effectiveness of adaptive project delivery strategies in uncertain and complex project processes where integrated and agile methods are necessary for project development. Design/methodology/approach The study employed a qualitative research design based on an instrumental case study. An agile hybrid project delivery framework was devised by combining agile and integrated project delivery methods. The interdisciplinary design and engineering tasks were recorded and evaluated with the process and product quality dimensions. The findings were reported through a thematic analysis to highlight the strategies, benefits, and challenges within the agile hybrid project experience. Findings The results from the case study suggest that the proposed agile-hybrid approach provided an adequate basis for complex design projects with changing factors, varying needs, stringent performance requirements, and integration imperatives while addressing complexity issues, project quality and stakeholder effort. The adaptive and flexible nature of the employed project delivery framework allowed for the identification of interconnected design problems, the breakdown of design tasks into manageable and interdependent sprints, and the catalysis of dynamic and efficient stakeholder interactions for improved decision-making, increased project value and collaborative processes. Parametric BIM models facilitated the robust exchange of information during iterative and incremental project development cycles. Originality/value The study introduces an unprecedented agile hybrid approach with an adaptable and integrated project delivery framework with a comprehensive real-world case study that explores various aspects of wide-range implementation. These include compliant project types, transformed stakeholder roles and responsibilities, cross-functional team building, critical uncertainty dimensions, facilitation of iterative and cyclic workflows, situated BIM use along with strategic considerations, and suitability markers. The study also offers evidence-based insights and actionable recommendations on the effective deployment of agile hybrid project delivery methods in specific AEC projects characterized by uncertainties and ongoing changes.

Introduction. Cash flow analysis is a necessary prerequisite for their effective management to accelerate the turnover of assets and capital and ensure financial stability and solvency of the enterprise. Methods. In the process of research general and special methods were used, in particular: dialectical method for determining general approaches to scientific research; analytical and monographic method was used in the review of literature sources; the method of classifications made it possible to differentiate the main indicators of cash flow analysis by analytical groups. Results. Cash flow analysis is an integral part of the process of managing them because, first of all, it allows you to get a qualitative description of the effectiveness of cash flow management. The article defines the algorithm for calculating the coefficients of estimation of cash flows of enterprises. Various relative indicators of cash flow assessment are grouped into 11 clusters - indicators: cash flow structure, cash flow efficiency, cash flow profitability, cash flow adequacy (deficiency), cash flow generation, cash flow liquidity, solvency, cash flow quality, operating activities, uniformity and interconnection. The given relative indicators of the analysis of cash flows allow estimating comprehensively the ability of the enterprise to generate cash flows of a volume sufficient for calculation on monetary obligations. The analysis of cash flows in dynamics allows establishing positive and negative tendencies based on which optimization adjustments in the management of cash flows of the enterprises are accepted. Discussion. Prospects for further research are to identify the impact of effective cash flow management on ensuring the financial stability of the enterprise. Keywords: cash flow, operating activities, financial statements, ratio analysis

Nothing provides a clearer picture of the financial strength (or weakness) of any business than an understanding of its cash flow strategy. Since cash is the life-blood of any business, the strength of the enterprise is directly related to the quality of its cash flow management strategies.Cash-management specialist Keith Checkley has consulted with and trained cash management specialists throughout the world. He brings the reader up to date on the important issues and essential techniques for implementing and managing an effective cash flow system. New case studies make the concepts easy to understand and apply.Cash Is Still King is divided into three parts: 1) cash flow and business management; 2) cash flow and banking relationships; and 3) cash flow and restructuring or reorganizing a business.

This study examined the effect of cash flow on the dividend payout ratio of listed manufacturing firms in Nigeria, with specific objectives to assess how operating, investing, and Financing Cash Flows, cash ratio, and net cash flow yield influence dividend payout ratio. The study adopted an ex-post facto research design, as it relied on historical financial data that could not be manipulated by the researcher. The population comprised twenty (20) manufacturing firms listed on the Nigerian Exchange Group as of 2024, from which fifteen (15) firms were purposively selected based on data availability between 2015 and 2024. Data were obtained from the published annual reports and accounts of the selected firms. Hypotheses were tested using the Panel Estimated Generalized Least Squares (EGLS) regression model. The findings revealed that: Operating Cash Flow has a positive and significant effect on dividend payout ratio of manufacturing firms in Nigeria; Investing Cash Flow has a positive and significant effect on dividend payout ratio of manufacturing firms in Nigeria; Financing Cash Flow has a negative and significant effect on dividend payout ratio of manufacturing firms in Nigeria; cash ratio has a negative and significant effect on dividend payout ratio of manufacturing firms in Nigeria; net cash flow yield has a positive and significant effect on dividend payout ratio of manufacturing firms in Nigeria. Thus, the nexus between cash flow management and dividend payout is systematic rather than incidental, reinforcing the notion that dividend policy in Nigeria’s manufacturing sector is deeply rooted in cash flow realities rather than purely accounting profits. With the negative and significant effect of cash ratio on dividend payout ratio, corporate treasurers and chief financial officers should ensure optimal liquidity management, maintaining adequate but not excessive cash holdings so that surplus funds are not unnecessarily tied down in idle cash balances but are used in ways that support shareholder value through consistent dividend payments.

An analysis of the scientific literature on project cash flow control and fuzzy modelling shows that project cash flows are modelled using only basic approaches drawn from fuzzy theory, which may distort the credibility of the model. In this paper, we therefore propose to use the whole spectrum of fuzzy arithmetic, and to select operations that suit the nature of the cash flows in question, their dependencies and the preferences of the project manager. An analysis of the literature also shows that in practically all existing models of project costs and cash flow management, project costs and cash flows are treated at a very high level of generality (without considering the various types of project, factors influencing their variability and signals warning of imminent cash-related problems), and estimations are not updated on an ongoing basis throughout the duration of the project. The results of a survey performed with the participation of 100 project managers show that this simplistic view of project cash flows may be distorting, and cannot guarantee the development of an efficient project cost and cash flow control system. We propose an approach that at least partially compensates for these drawbacks: it differentiates between types of project cash flows and the factors and triggers affecting changes in cash flows. Two case studies are used for a an initial verification of the approach. The paper concludes with suggestions for further research perspectives.

This study was aimed at examining the influence of cash flow management on financial performance of selected listed companies in Nigeria. This was premised on the conflicting results and assertions in the literature in respect to the influence of cash flow management and financial performance of entities. Ex-post facto research design was adopted for the study using secondary data of sixty-three (63) selected listed companies in the Nigerian Stock Exchange (NSE) for the period 2013 to 2019. The nature of data was panel data. The dependent variable for financial performance is Return on Asset (ROA), while independent variables was cash flow management decomposed into Operating Cash Flow Margin (OCFM), Operating Cash Flow Ratio (OCFR), Investing Cash Flow Ratio (ICFR), Financing Cash Flow Ratio (FCFR) and Net Cash Flow Ratio (NCFR). The descriptive and inferential statistics were used for data analyses. Results showed that OCFM, OCFR, ICFR and NCFR had positive and significant influence on Financial Performance (ROA) and FCFR had a negative and insignificant influence on financial performance (ROA) of selected listed companies in Nigeria. It was recommended that managers of entities and policy makers, financial consultants and regulatory agencies avail themselves of the core variables of cash flow management used in this study to understand their nexus and to improve in their statutory functions to enhance long-term sustainability of entities.

Abstract: The excessive level of construction business failures and their association with financial difficulties has placed financial management in the forefront of many business imperatives. This has highlighted the importance of cash flow forecasting and management that has given rise to the development of several forecasting models. The traditional approach to the use of project financial models has been largely a project‐oriented perspective. However, the dominating role of “project economics” in shaping “corporate economics” tends to place the corporate strategy at the mercy of the projects. This article approaches the concept of cash flow forecasting and management from a fresh perspective. Here, the use of forecasting models is extended beyond their traditional role as a guideline for monitoring and control of progress. They are regarded as tools for driving the project in the direction of corporate goals. The work is based on the premise that the main parties could negotiate the terms and attempt to complement their priorities. As part of this approach, a model is proposed for forecasting and management of project cash flow. The mathematical component of the model integrates three modules: an exponential and two fourth‐degree polynomials. The model generates a forecast by potentially combining the outcome of data analysis with the experience and knowledge of the forecaster/organization. In light of corporate objectives, the generated forecast is then manipulated and replaced by a range of favorable but realistic cash flow profiles. Finally, through a negotiation with other parties, a compromised favorable cash flow is achieved. This article will describe the novel way the model is used as a decision support tool. Although the structure of the model and its mathematical components are described in detail, the data processing and analysis parts are briefly described and referenced accordingly. The viability of the model and the approach are demonstrated by means of a scenario.

Currently, the Ukrainian insurance market demonstrates the emergence of problems in certain sectors and a reduction in the growth rate of insurance premiums. Losses of insurance companies also increase, which in turn leads to lower profitability of own funds and increases costs. All these are the reasons for the decrease in profitability of the insurance business. In order to maintain the status of insurance companies in the market, one should pay attention to the cash flow. In the process of operations it is important to optimize the cash flow and change the financial management methods of the insurance company accordingly. The financial stability of an insurance organization depends on the effectiveness of cash flow management, and due to the imbalance of funds, additional liabilities may arise that lead to the instability of the insurer's finances. The purpose of this study is to develop directions for optimizing cash flows, the implementation of which will improve the financial stability of the insurance company. The research shows the problems of financial stability of insurance companies. Having analyzed the scientific studies and publications, the general definition of financial stability was found. It is shown through the effective management of cash flow, especially through the optimization of output cash flow of insurance companies. The peculiarities of cash flows generated by insurance companies are determined, and the importance of cash flows for financial stability is shown. The article justifies the choise of propositions that can improve cash flows based on analysis of financial activity of NSSC “Oranta”. Investigation of the financial activity of NSSC “Oranta” shows that there are problems with the company's finances that are associated with the increased commercial expenses and receivable accounts. The algorithm of cash flow optimization was developed and its influence on financial stability through the increasing of profitability was explained. Having solved this problem, the insurance company can improve its capital structure, increase the profitability of the capital and its financial activity that will make company's finances more stable. Key words cash flow, cash flow balance, cash flow liquidity, insurance companies, financial stability.

Effective management of cash flow is an essential element in sustaining and expanding Micro, Small, and Medium Enterprises (MSMEs). Inadequate financial recording and minimal digital financial literacy contribute to the challenges faced by many MSMEs in Indonesia in managing their cash flow. This program explores the capacity of QR Code technology, specifically the Quick Response Code Indonesian Standard (QRIS), to improve the management of cash flow in MSMEs. The objective of the study was to adopt QRIS as a digital payment system in order to enhance cash flow efficiency. A training and mentorship program was carried out for 30 MSMEs associated with the East Java IKM Forum. The program followed a five-stage approach, which included planning, execution, evaluation, feedback, and sustainability program. The findings demonstrate a notable enhancement in the digital financial literacy of the participants after the session. The integration of QRIS into the daily operations of MSMEs facilitated more efficient cash flow management and expanded consumer outreach. The implementation of QRIS technology shown its efficacy in enabling financial monitoring and broadening commercial prospects for MSMEs.

This study investigates the relationship between cash flow variables and financial distress among hospitality companies listed on the Indonesian stock market between 2017 and 2022. Analysis focused on Operating Cash Flow (OCF), Investment Cash Flow (ICF), and Financial Cash Flow (FCF) to discern their individual and combined impacts on financial distress.
 The findings reveal that each cash flow variable—OCF, ICF, and FCF—exerts a significant influence on financial distress when considered independently. This supports hypotheses 1, 2, and 3, signifying their substantial role in shaping the financial health of these companies. Additionally, the collective effect of these cash flow variables, as evidenced by the F-test, demonstrates a noteworthy combined impact on financial distress. In summary, this study highlights the intricate interplay between cash flow dynamics and financial distress among Indonesian-listed private companies. While each cash flow component independently affects financial stability, their cumulative influence significantly determines vulnerability to financial distress. This underscores the critical need for comprehensive cash flow management strategies to mitigate financial risks and ensure sustained financial health in these entities amidst economic uncertainties.

PurposeTo manage cash flow in supply chains, the purpose of this paper is to propose inverse data envelopment analysis (DEA) model.Design/methodology/approachThis paper develops an inverse range directional measure (RDM) model to deal with positive and negative values. The proposed model is developed to estimate input and output variations such that not only efficiency score of decision making unit (DMU) remains unchanged, but also efficiency score of other DMUs do not change.FindingsGiven that auto making industry deals with huge variety and volumes of parts, cash flow management is so important. In this paper, inverse RDM models are developed to manage cash flow in supply chains. For the first time, the authors propose inverse DEA models to deal with negative data. By applying the inverse DEA models, managers distinguish efficient DMUs from inefficient ones and devise appropriate strategies to increase efficiency score. Given results of inverse integrated RDM model, other combinations of cash flow strategies are proposed. The suggested strategies can be taken into account as novel strategies in cash flow management. Interesting point is that such strategies do not lead to changes in efficiency scores.Originality/valueIn this paper, inverse input and output-oriented RDM model is developed in presence of negative data. These models are applied in resource allocation and investment analysis problems. Also, inverse integrated RDM model is developed.

The purpose of the article is to consider the information and analytical support of the cash flows management at the enterprises. It is necessary to investigate the theoretical aspects of the information and analytical support of the cash flows management, taking into account the current conditions of the enterprises. The object of the research is the information and analytical support of the cash flows management at the enterprises. The methods of cognition, synthesis, generalization, systematization, visual methods are used. The concept of "information flow" is considered, which can be considered in three aspects: syntactic, semantic, and pragmatic. The term "information and analytical support" is disclosed from the point of view of scientific concepts of various researchers. It is determined the components of the information and analytical support of the cash flow management. These components include: information, analytical, software and technological support. The sources of the information component of the information and analytical support of the enterprise's cash flow management are determined. It has been proven that the quantity and quality of information determines the effectiveness of the entire management system of the enterprise as a whole and cash flow management, in particular. A systematization of stakeholders interested in receiving data on the company's cash flows is provided. Thus, a component of the cash flow management system is information and analytical support, the main components of which are informational, analytical, software and technological components. To carry out an effective analysis of cash flows, it is necessary to create an information base that includes external and internal information. When studying internal information, it is divided into accounting and non-accounting. The results of the study showed that the need of stakeholders for information about the state of cash flows of financial statements is growing every year, therefore it is important to provide stakeholders with reliable information. The expediency of distinguishing two groups of information users: external and internal has been established. The practical value of the conducted research lies in the further use of information and analytical support in the company's activities.