ASSESSMENT OF FACTORS AFFECTING CONTRACTORS’ CASH FLOW IN THE NIGERIAN CONSTRUCTION INDUSTRY

This research work is titled “Assessment of Factors Affecting Contractors’ Cash Flow in the Nigerian Construction Industry”. The objectives of this study are to determine the sources of construction contractors’ cash flow; to find out the negative factors affecting construction contractors’ cash flow; and to determine the positive factors affecting construction contractors’ cash flow. This research was carried out using quantitative analysis. The population of the study consists of Thirteen (13) building construction industries. Purposive sampling was used in selecting the study sample size. Hence 44 of such personnel were administered the questionnaire but only 31 copies were retrieved. Questionnaires served as the primary sources of data. The feedback from questionnaires were analyzed using Microsoft excel and manual calculation to calculate the frequency and percentages. The findings of this study revealed that contractors undertook building contracts in both medium and large scale organization, work mostly in private (contracting firm), employed the services of building and quantity surveying with 5 years of experience and above that. The findings of this study also revealed that cash from operations such as payment for goods and services from customers, interest on savings and shareholder investments were the sources of contractors’ cash flow. Moreover, the findings revealed that delay in payment from client; inadequate financial management strategies, inflation and irregular cash-flow were the negative factors affecting contractors on cash flow among construction firms. Furthermore, findings revealed that adequate planning and execution of the project, timely payment from client and adequate financial stability positively affect contractors on cash flow among construction firms. Proper utilization of cash resources, securing regular cash flow throughout the project’s life-cycle and adjusted price tender also positively affect contractors on cash flow among construction firms. It was therefore recommended that: contractors should be adequately prepared on financial stability and flows; training and professional development should be ensured for contractors on proper utilization of cash resources; and government and non-governmental organizations should provide regular cash to contractors in order to ensure adequate flows of the cash flow.