Financing development: an analysis into cash flow movement between major development parties

Ellett, Stephen (2016) Financing development: an analysis into cash flow movement between major development parties. BSc dissertation, University of Portsmouth.

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    Abstract

    This dissertation expands the knowledge of the way in which finance is obtained and dispersed in the construction industry. It is important that widespread stakeholders gain an understanding because it may have consequences on their involvements. Particularly industry professionals, students, property/land owners and investors should benefit from the project and feel more equipped to make sense of the economic reasons behind a development.
    The objectives of the research were to analyse three main development parties of the purchaser, developer and contractor. As well as identifying who in construction projects source finance and the decisions they take to acquire it, discovering cash flow situations at different stages and the characteristics attached. Then investigating with real development examples, how cash flow should be managed. Part of the study was also to examine project finance trends through an exclusive case study.
    Consequently, this study incorporates an investigation into the published literature available on the combined subject area as well as carrying out a series of primary and secondary data collection research techniques. These include a questionnaire, interview and case studies.
    Key conclusions were that developers typically acquire funds from a number of sources to spread risk and that cash flow is most accurately depicted by an ‘S’ curve whereby expenditure peaks during the middle third.
    In a sector where tight profit margins exist, cash flow can be the difference between project success and failure. Furthermore, it is arguably the most important aspect to any business as you can survive a period without making profit or even showing a loss, but a company will fold from a lack of cash flow. This report intends to investigate these topics that are key to project delivery in the construction industry.

    Item Type: Dissertation
    Departments/Research Groups: Faculty of Technology > School of Civil Engineering and Surveying
    Depositing User: Beth Atkins
    Date Deposited: 05 Sep 2016 09:31
    Last Modified: 05 Sep 2016 09:31
    URI: http://eprints.port.ac.uk/id/eprint/21706

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