Grace Kehinde Ojo
Project characteristics have been identified as major causes of inaccurate cash flow prediction which makes it exposed to more risk, the extent of its impact is a major concern to the construction cost professionals. The purpose of this paper is to investigate the relationship between project characteristics and risk associated with predicted clients’ cash flow. One hundred and twenty four (124) construction clients’ representatives in cash flow management (consultant quantity surveyors) in Nigeria were surveyed using systematic and purposive sampling techniques. 22 significant individual risk factors and 8 reduced risk factors were subjected to Analysis of Variance (ANOVA) using test of hypothesis to study the influence of the project characteristics on the risk associated with client’s cash flow prediction. The result showed that there exist a significant relationship between project value and individual risk factors; and between project value and reduced risk factors (nature of the project, tendering procedure related factors). Also, project type and procurement method had significant influence on valuation assessment as a risk factor when forecasting cash flow by the clients. The construction professionals should take cognizance of project characteristics in managing risk at the early stage of the project so as to minimize the effect on project delivery variables at all other stages of construction.
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