| dc.description.abstract | The construction industry contributes considerably to developed and developing nations' gross domestic product (GDP). In highly developed economies, construction contributes between 7 and 10 percent of value, while in developing countries, it contributes between 3 and 6 percent. Due to the significance of this industry, the paper investigated the three most common threats to the cash flow of construction projects, which is the lifeblood of any construction endeavour. The literature review and survey determined that the three most prevalent risks were delayed payment, inadequate planning, and underestimation during the tendering phase. In addition to concluding the risks through the literature review and the survey, the author was able to conclude the mitigation methods followed to mitigate these risks, which included bank loans, investing equity, and amending the payment terms to receive the payments earlier than the contractually agreed payment terms in exchange for a deduction for early payment. The case study illustrated the influence of these risks on the cash flow and the mitigation techniques implemented. Accordingly, the delayed payment had the most severe impact on the negative cash flow, while poor planning had the most negligible impact. The contractor was advised to invest a portion of the equity, significantly improving the negative cash flow. However, amending the payment terms against minor deductions had the least impact compared to the other mitigation methods. However, these mitigation methods were based on the regulations and standards of Saudi Arabia, where the case study was conducted | - |
