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Candy Cash Flow models the financial requirements of a construction project so that the cash flow can be optimised.
The link between the BOQ and the program will produce the budget forecast; i.e. the value for the work scheduled for the relevant months.
This however does not represent the true cash flow as the claim for the work done during the month will be at the end of the month with payment for the work done lagging a month or more after submission of the claim.
The Cash flow module in Candy makes allowance for this scenario.
The lags on payment of invoices to suppliers and subcontractors can be specified, together with predicted escalation on cost and value. Interest rates, retention rules, pre-payments and other factors can be specified to model the cashflow.
Valuations payments from the client can be normal certificates or a predetermined milestone payment plan can be used or certificates can be limited to preset monthly maximums.
The Nett Present Value of the cash flow on the contract is generated from the weekly cash flow calculations. This can be viewed either from the client or the contractor’s perspective.
In addition, weekly results are produced of cash flows and bank balances, together with monthly valuations and cost figures.
Like Estimating, Cashflow handles foreign currencies and can accept data from Estimating in multiple currencies. The exchange rate between each currency and the pricing currency can be varied over time, giving the user the ability to examine the effects of currency fluctuations on a project.
CashFlow accepts data directly from the Bill of Quantities or from the Bill of Quantities/Planning linked relationship, or else data can be entered from the keyboard – or any combination of the three. This forms a financial model describing what has to be done in terms of the cost of labour, plant, material, etc., and the time scale within which these must occur.
By testing various models with different parameters and comparing the NPV results, the optimum tender strategy can be determined so as to maximise return on investment