Understanding of Variables that Creates Cash Flow Dynamics for the Sustainable Financing of Construction Project

Cash flow is one of the crucial things for the success of a construction project. Several components of cash flow, including advance payment, retention, payment term, capital, work progress, have an impact on project finances so that they shall be planned and controlled by the contractor. Therefore, it is essential to understand the interconnectivity dynamics between these cash-flow components within the project's context. This paper develops a conceptual model using a causal loop diagram to highlight project cash flow challenges in construction. By using an industrial building construction project as a case study, all the components may illustrate how they interact with each other and gain insights to develop a quantitative model.