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Construction Resources Fast Facts, Last Updated:09/05/2010
Many construction projects suffer from preventable financialproblems. Underbids ask for too little money to complete theproject. Cash flow problems exist when the present amount offunding cannot cover the current costs for labor and materials, andbecause they are a matter of having sufficient funds at a specifictime, can arise even when the overall total is enough. Fraudis a problem in many fields, but is notoriously prevalent in theconstruction field. Financial planning for the project is intendedto ensure that a solid plan, with adequate safeguards andcontingency plans, is in place before the project is started, andis required to ensure that the plan is properly executed over thelife of the project.

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