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Contemporary organizational theory in the management of construction projects

Mutti, C. and Hughes, W. (2001) Contemporary organizational theory in the management of construction projects. In: 17th Annual ARCOM Conference, 5-7 September 2001, University of Salford, pp. 457-468.

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The level of insolvencies in the construction industry is high, when compared to other industry sectors. Given the management expertise and experience that is available to the construction industry, it seems strange that, according to the literature, the major causes of failure are lack of financial control and poor management. This indicates that with a good cash flow management, companies could be kept operating and financially healthy. It is possible to prevent failure. Although there are financial models that can be used to predict failure, they are based on company accounts, which have been shown to be an unreliable source of data. There are models available for cash flow management and forecasting and these could be used as a starting point for managers in rethinking their cash flow management practices. The research reported here has reached the stage of formulating researchable questions for an in-depth study including issues such as how contractors manage their cash flow, how payment practices can be managed without damaging others in the supply chain and the relationships between companies" financial structures and the payment regimes to which they are subjected.

Item Type:Conference or Workshop Item (Paper)
Divisions:Faculty of Science > School of the Built Environment > Construction Management and Engineering > Business Innovation in Construction
ID Code:4309
Uncontrolled Keywords:cash flow management; company survival; company failure; financial control
Publisher:Reading, Association of Researchers in Construction Management


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