Cash flow forecasting - UK

This guidance note summarises what cash flow forecasting is, how to produce a useful forecast and how to then use the forecast to assess progress on site as well as other issues, and to assist both employers and contractors to analyse actual expenditure against forecast expenditure.

For the purposes of giving guidance the client is referred to as the 'employer' and the main contractor as 'contractor'. However, much of the guidance can equally be applied to a contractor/sub-contractor or supplier arrangement.

This is part of the RICS QS and construction standards (the 'Black Book').

Please be aware that this guidance note contains some material which is in the process of being updated for revisions to the CDM Regulations, RIBA Plan of Work, and updates to the JCT, NEC and FIDIC suites. Members are made aware of these impending revisions in order that they first check the most up to date position before electing to act in accordance with this guidance document.