Abeysekera, Vasantha (2012) A conceptual framework for client financed construction and non-traditional approaches for financing construction work. In: World Construction Conference 2012: Global Challenges in Constrcution Industry, 28-30 June 2012, Colombo, Sri Lanka.
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The basic premise of the client-financed-construction philosophy is that those who commission service providers must not only pay for their services for the cost of their labour, materials, plant and equipment but do so in a manner that adds value to all parties. A new framework for proposing, evaluating and implementing such systems has been conceived which is used for evaluating three non-traditional approaches for financing construction work, and thereby validating the framework. The three approaches, namely, ‘rolling advance payment’, ‘rolling material price advance’, and ‘direct financing’ have been described and analysed with the ‘rolling advance payment’ approach being described as a revolutionary approach for solving problems connected with financing contractors and as an approach that has much potential to add value to all parties. The two systems are particularly useful as a crisis management system in projects saddled with cash flow problems bringing ‘life’ to almost ‘dead’ projects with potential benefits to all parties. The paper calls for good construction project management as an essential condition for implementing these schemes with particular attention given to risk management and local construction culture.
|Item Type:||Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)|
|Additional Information:||Published version © Ceylon Institute of Builders - Sri Lanka.|
|Uncontrolled Keywords:||cash flow, construction contracts, contractor finance, risk management|
|Depositing User:||Dr Vasantha Abeysekera|
|Date Deposited:||17 Jul 2012 02:14|
|Last Modified:||03 Jul 2013 01:13|
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