Dynamic management of construction projects' cash flow

The dynamic forecasting of cash flow is important both to the owners and contractors of construction projects for planning funds and reducing cost. However, it's a great challenge to manage the cash flow especially more than one project involved in because of the time gap between its occurrence and actual payment. The factors in relation to the dynamic cash flow forecasting are put forward after analyzing the composition and characters of construction projects' cash flow based on the forecasting. Then the project cash flow dynamic forecasting model is made taking account of the delayed payment by employer and floating of price index. Finally the model is explained and checked by analyzing an example and it is emphasized that project cash flow forecast be conducted circularly.