Conceptual review study of working capital management practices in the construction industry: trends and research prospects in Ghana

Emmanuel Asare*, De Graft Owusu-Manu, Joshua Ayarkwa, David John Edwards

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    5 Citations (SciVal)
    Original languageEnglish
    JournalJournal of Engineering, Design and Technology
    DOIs
    Publication statusPublished (VoR) - 17 May 2022

    Funding

    It worth noting that the turnaround time of the CI is not constant holistically but unique to specific projects as the size of a project spells out the financial parameters. Payment for work done in most instances is a challenge affecting construction firms’ cash flows and WCM particularly in developing countries. Even well positioned construction companies with good balance sheet end up contracting financial assistance from the financial institutions to support operations when payment delays (). Most developing countries have no infrastructure development banks that can grant medium- to long-term loans therefore fail to offer loans to the industry players to execute long term construction projects. It means failure on the part of the client paying contractors on time hence affecting the firms’ WCM and eventually its operations.

    Keywords

    • Construction industry
    • Practices
    • Working capital management

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