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The cost flow, therefore, does not reflect the actual outflow of money, but rather the progress of the project in monetary terms.Money could have been paid before the activity was performed, the resource used, or the service given (down payment), or after completion (credit).This Time Lag can be positive (credit) or negative (down payment), depending on the payment method.The Expense Flow is the monetary stream of the actual payments made for resources or services, as a function of time.Construction management entails planning (target setting) and controlling (measuring actual performance against the plan), both drawing on many resources which together constitute a typical construction project.This cyclic process should be done frequently because of the ever-changing environment of the construction project.One of the most important resources is cash in support of the day-to-day construction activities (according to some sources [16], cash is the most important resource).



Adequate cash flow management is important not only as a management tool but also as a means to obtain loans, which are more readily obtained by companies that can present convincing periodic cash flow forecasts.In order to compile cash flow, the costs of each activity have to be distributed over the project’s duration.The time is taken from the schedule, which is based on technological, logistical and organizational considerations, but no weight is given to the payment method.It is compiled on the basis of cost flow by projecting costs as a function of usage time and payment method (positive or negative time lag).