Cash Flow Projections for Selected TxDoT Highway Projects
Publication: Journal of Construction Engineering and Management
Volume 133, Issue 3
Abstract
In planning for contractor payments, an owner with multiple projects needs to estimate the amount of money to be paid to contractors in coming months. For an owner as large as the Texas Department of Transportation (TxDoT), one is faced with the problem of organizing the budget to ensure that there are sufficient funds for all projects. This investigation was requested by TxDoT to provide a tool to forecast future project payments. Recent account summaries of TxDoT projects from 2001 to 2003 were analyzed for creating mathematical models representing monthly payments for various projects. The data were organized into categories of project types and subcategories of project contract amount. A fourth degree polynomial regression analysis was run on the data and the regression curve, when statistically significant, was taken to be the forecast payment curve. Finally, a computer program was developed to implement the results of the investigation for TxDoT’s needs. The methodology provided will help other highway agencies to create their own equations to better predict project cash flows and trends. This investigation might also benefit researchers in projecting cash flows and trends, while also allowing for improvements.
Get full access to this article
View all available purchase options and get full access to this article.
Acknowledgments
The writers would like to thank Tracey Friggle and TxDoT for funding the investigation and providing the data.
References
Davis, E. W., and Patterson, J. H. (1975). “Resource-based project scheduling: Which rules perform best?” Project Management Q., 6(4), 25–31.
Hegazy, T., et al. (2000). “Algorithm for scheduling with multiskilled constrained resources.” J. Constr. Eng. Manage., 126(6), 414–421.
Hegazy, T., and Kassab, M. (2003). “Resource optimization using combined simulation and genetic algorithms.” J. Constr. Eng. Manage., 129(6), 698–705.
Hinze, J. W. (2004). “Construction planning and scheduling.” Resource allocation and resource leveling, Pearson Prentice-Hall, Columbus, Ohio, 110–156.
Navon, R. (1996). “Company-level cash-flow management.” J. Constr. Eng. Manage., 122(1), 22–29.
Talbot, F., and Patterson, J. H. (1979). “Optimal methods for scheduling projects under resource constraints.” Project Management Q., 10(4), 26–33.
Touran, A. (1991). “Discussion of ‘Current float techniques for resources scheduling’ by V. Shanmuganayagam.” J. Constr. Eng. Manage., 117(3), 574–575.
Touran, A., Atgun, M., and Bhurisith, I. (2004). “Analysis of the United States Department of Transportation prompt pay provisions.” J. Constr. Eng. Manage., 130(5), 719–725.
Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 133 • Issue 3 • March 2007
Pages: 235 - 241
Copyright
© 2007 ASCE.
History
Received: Jan 17, 2006
Accepted: Oct 26, 2006
Published online: Mar 1, 2007
Published in print: Mar 2007
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.