2009

CASH FLOW ANALYSIS

CONTRACTORS' POINT OF VIEW
THE ARABIC BOOK
By:
Eng. Mahmoud ElTahawy

ENG.MAHMOUD
ELTAHAWY
Mobile: +20107866613
Mma_tahawy@yahoo.com

Cash flow analysis

Contractors' POV
- 1 Introduction
( )cash in ( )cash out
.
.
- 2 cash flow
:

1- Cash out
2- Cash in

:
( ) (
).
cash out :
1- Schedule
2- Cost
schedule .
cost .

$ 5,000
.
$ 50,000
Task A
$ 40,000
Task B
$ 60,000
Task C
$ 30,000
Task D
Month 4

Month 3

Month 2

Month 1

Time

$ 5,000
15,000
20,000

$ 5,000
75,000
80,000

$ 5,000
65,000
70,000

$ 5,000
25,000
30,000

Ind. Cost
Dir. Cost
Total cost

200,000

180,000

100,000

30,000

Cumulative
monthly cost

)Bar chart (Dir. And Ind. Cost are illustrated

Eng.Mahmoud ElTahawy
Mma_tahawy@yahoo.com

Cash flow analysis

Contractors' POV
( A $25,000 B
$20,000 C $20,000 $65,000 .

S-Curve Cumulative Monthly Cost

Cum. Cost

250
200

200
180

150
100

100

50
30
0
4

S-Curve

.
:
1- Contract Price.
2- Terms of Payment.
( )
:

- 1
-2
-3
-4
-5

Eng.Mahmoud ElTahawy
Mma_tahawy@yahoo.com

?1- Is there any down payment

?When to send invoices
?When to collect invoices
?What is the retention amount
?When to collect retention amounts

2345-

Cash flow analysis

Contractors' POV

:
Time (end of month)

Month 1

Month 2

Month 3

Month 4

payment

20,000

30,000

35,000

50,000

Cumulative Payment

20,000

50,000

85,000

135,000

Stepped Curve
:
160
135

140
120
100
85
80
60

50

40
20
20
0

End of
month 1

End of
month 2

End of
month 3

End of
month 4

Eng.Mahmoud ElTahawy
Mma_tahawy@yahoo.com

Cash flow analysis

Contractors' POV
Cash Flow
.
Cash in Cash out :
Overdraf
t

Cash in
Cash out

Cash Flow

S-Curve Stepped Curve Overdraft

.

.
( )Front loading
( ).

No
overdraft

Cash Flow

Eng.Mahmoud ElTahawy
Mma_tahawy@yahoo.com

Cash flow analysis

Contractors' POV

Simple Example.
,
( )contract price $200,000 ()profit or markup
$20,000 %20 ,
NO
End of each month
1 month after
10%
1 month after project completion

30,000
20,000
50,000

3
40,000
30,000
70,000

?1- Is there any down payment

?2- When to send invoices
?3- When to collect invoices
?4- What is the retention amount
?5- When to collect retention amounts

2
20,000
20,000

40,000

1
20,000

20,000

Task cost/task
Task
$ 40,000
A
$ 60,000
B
$ 60,000
C
$ 20,000
D
Total cost = 180,000

( )
%20 ( )20,000+0.2x20,000=25,000 .
%10
.
( )
. cash in
() cash in cash out
( )

.
.

Eng.Mahmoud ElTahawy
Mma_tahawy@yahoo.com

Cash flow analysis

Contractors' POV

1
End of month

Monthly invoice
amount

25,000

2
Monthly cash in

Retention

Amount to be
financed
(cumulative)

Amount to be
financed
monthly

--

20,000

20,000

60,000-20,000
2

45,000

22,500

2,500

60,000
= 40,000
107,500-60,000

75,000

40,500

4,500

107,500
=47,500
117,500-107,500

55,000

67,500

7,500

117,500
=9,500

--

55,000+14,500

--

49,500

We don't need
money to
finance
Negative value

20,000

We don't need
money to
finance
Negative value

Eng.Mahmoud ElTahawy
Mma_tahawy@yahoo.com

Cash flow analysis

Contractors' POV

180,000

180,000

130,000
60,000
20,000

200,000

130,500
63,000
22,5000
1

Cash flow

Eng.Mahmoud ElTahawy
Mma_tahawy@yahoo.com

Cash flow analysis

Contractors' POV

/
( -) 2006
0107866613
Mma_tahawy@yahoo.com

Eng.Mahmoud ElTahawy
Mma_tahawy@yahoo.com