%0 Journal Article
	%A Wenhua Hou and  Xing Liu and  Deqiang Chen
	%D 2011
	%J International Journal of Economics and Management Engineering
	%B World Academy of Science, Engineering and Technology
	%I Open Science Index 58, 2011
	%T Payment Problems, Cash Flow and Profitability of Construction Project: A System Dynamics Model
	%U https://publications.waset.org/pdf/1811
	%V 58
	%X The ubiquitous payment problems within construction
industry of China are notoriously hard to be resolved, thus lead to a
series of impacts to the industry chain. Among of them, the most direct
result is affecting the normal operation of contractors negatively. A
wealth of research has already discussed reasons of the payment
problems by introducing a number of possible improvement strategies.
But the causalities of these problems are still far from harsh reality. In
this paper, the authors propose a model for cash flow system of
construction projects by introducing System Dynamics techniques to
explore causal facets of the payment problem. The effects of payment
arrears on both cash flow and profitability of project are simulated into
four scenarios by using data from real projects. Simulating results
show visible clues to help contractors quantitatively determining the
consequences for the construction project that arise from payment
delay.
	%P 1266 - 1272