The architecture of an IT system for payment methods in the construction industry

I. A. Motawa, A. Kaka

Research output: Chapter in Book/Report/Conference proceedingConference contribution book


Cash flow modelling has been the focus of different IT systems. These IT systems were largely developed to forecast and/or manage cash flow. However, cash flow models that consider the potential payment method are hardly dealt with in IT systems. Payment methods in this context relate to the processes by which construction products and services are priced and paid for. Alternative payment methods (e.g. incentive based, milestones, stage payment) are emerging but it is not yet fully understood how they should be implemented and what are their advantages and disadvantages in general. This research focuses on approaches that will encourage best practice and help facilitate project stakeholder satisfaction. As such this research aims to make a significant step forward from previous cash flow research that has typically focussed on forecasting and managing cash flow of projects adopting the standard approach of interim progress measurement. An IT system for payment methods in construction is to be developed to promote its use as performance enabling mechanisms. This will require identification of the available payment methods in terms of their supply chain links and pricing systems. This paper describes the development and the architecture of the proposed IT system. The system is intended to help industry practitioners in selecting the most appropriate payment method for given sets of project requirements and characteristics. The system will act as an aid to design or "fine-tune" payment methods to individual projects characteristics and needs. It can also be used by projects' stakeholders to forecast and plan their cash flow once a payment method is defined.

Original languageEnglish
Title of host publicationProceedings of the 5th International Conference on Engineering Computational Technology
Place of Publication[Kippen]
PublisherCivil-Comp Press
ISBN (Print)9781905088096
Publication statusPublished - 2006
Externally publishedYes
Event5th International Conference on Engineering Computational Technology, ECT 2006 - Las Palmas de Gran Canaria, Spain
Duration: 12 Sep 200615 Sep 2006


Conference5th International Conference on Engineering Computational Technology, ECT 2006
CityLas Palmas de Gran Canaria


  • cash flow
  • construction process
  • payment methods

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