FACTORS AFFECTING THE CONSTRUCTION PROJECTS FINANCING COST

Hosam H. Mohamed, Ahmed H. Ibrahim

Abstract


Construction contractors in almost all projects have three main targets: to finish their projects within the scheduled time, with an acceptable quality, and within the assigned budget. This study is focused on the third target which is the financial part of the whole process. The study will attempt to identify the main factors affecting two of several financial keys that influence the contractor's cash flow. These two keys are the values of the financing cost and the maximum capital needs for any construction project. A unique type of construction projects is taken into consideration through this study, that is the building projects type. It has to be noted that both the financing cost and the maximum capital needs can have a serious effect on the project progress as well as on contractor’s profit. So, studying the factors affecting these two values is very important. The contractor uses the financing cost and the maximum capital needs as indicators that enable him to pay more attention to make his project more successfully completed and more profitable

Refbacks

  • There are currently no refbacks.