The algorithm of cash flow forecasting in planning stage for construction project

The study suggests an algorithm, which forecasts cash flow in a planning stage to manage a liquidity crisis effectively. The algorithm involves calculation of optimal cash level considering time lag, item costs, and weight of items for construction projects. It also suggests a forecast of cash flow after a comparison of cash-in and cash-out with the simulation of billing time lag according to the earned value and time lag of each item. Forecasts on cash flow, moreover, are made using various simulations on the component ratio of each item according to the budget. Therefore, this study aims to provide a solution to liquidity problems from insufficient cash and a good measure to forecast a proper level of cash flow.