Before I get into the context of commitments, expenditures and payments, I want to address cash flow. Often times the commitments expenditure and payment plans and curves are referred to as a cash flow. This is not a cash flow. A typical cash flow is made up of:
- Cash out: This includes items such as bid costs, engineering & design costs, material purchase orders, labor, overhead, and subcontracts.
- Cash in: This includes items such as billings, retentions, claims and change orders.
Many factors influence the cash flow including project duration, contractual retention clauses, payment schedules, contract types (milestone, progress etc.), credit arrangements, and equipment rentals. The reason a commitment, expenditure and payment curve is not a cash flow is because
This training content is exclusive to members of Plan Academy.
Members can login immediately and get access to this content and a wide collection of eBooks, Webinars, Tutorials and of course our Primarvera Video Course materials. Read our FAQ if you would like more information.Start YOUR Primavera P6 Training Now!