ASSESSING THE CAPABILITIES OF CONTRACTORS IN MONITORING AND CONTROLLING CONSTRUCTION CASH FLOW IN NIGERIA

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Author

Presented To

Department of Environmental Design

ABSTRACT
The construction sector experiences the highest number of bankruptcies compared to any sector of the economy, with many companies failing because of poor cash flow management. This study assessed the capabilities of Nigeria contracting firms in monitoring and controlling of construction cash flow. Quantitative approach was used to administered questionnaire survey to 246 contracting firms involved in building and civil engineering works in Nigeria. A total number of 112 questionnaires were filled and returned and the results were analysed using the arithmetic mean values and ranking of variables in Statistical Package for Social Sciences (SPSS). Essentially, the survey evaluates the extent of usage of some identified construction cash flow monitoring and controlling key practices. The findings show that; the Nigerian construction sector is currently at a low capability level and usage of the key practices in construction cash flow monitoring and controlling, the large size firms have high capability level and usage of the key practices in construction cash flow monitoring and controlling. Medium and small size firms which are the predominant category of firms in the construction sector in Nigeria have low capability level and usage of the key practices in construction cash flow monitoring and controlling and in dire need for improvement. The research work recommends that; for an effective cash flow monitoring and controlling practice, an assessment frame work should be developed by the contractors for use in contract administration, continuous education and training of the entire staff responsible for cash flow management through workshops and seminars in order to improve their skills in cash flow management and Contractors should involve the Quantity Surveyors, who are disciplined as cost managers to be responsible and accountable for cash flow management.