Optimizing cash-flow-at-risk in construction projects : a cost reduction approach

Abstract

Project managers normally are facing with di culties behind management of project cash flow, which requires distinguished methods and appropriate tools to manage negative cash flows. Cash-Flow-at-Risk (CFaR) model is an e cient approach to predict cash flow trend. In this study, all risk factors a ecting project management environment have incorporated to predict an accurate project cash flow. Then, a response surface method (RSM) is applied to determine optimal level of risk. The results have successfully implemented through a case study to demonstrate the applicability of the proposed method.