The relationship between construction scheduling and cash flow in the construction of infrastructure projects

Esat Gashi^*Yllka Binaku

• University of Pristina, Prishtina, Albania

Delivery of infrastructure projects depends on balancing key constraints of time, cost, and scope. In large linear infrastructure projects such as railways, this balance is especially challenging due to complex activity sequences, significant upfront procurement requirements, and progress-based payment systems. Poor integration between scheduling and financial planning often results in cash flow problems, delays, claims, and budget overruns. Although many cash flow forecasting models exist in the literature, most are mainly theoretical and lack strong connections to actual scheduling decisions during project execution. In real-world practice, contractors, particularly on railway infrastructure projects, often modify schedules to accelerate early cash inflows by procuring expensive materials in advance. While these strategies might improve short-term liquidity, they can also disrupt execution processes, create a misleading view of physical progress, and increase financial and contractual risks. This study examines how construction scheduling affects cash flow through a detailed case study of a railway infrastructure project completed under FIDIC Red Book contract conditions. Several scheduling scenarios are analyzed and compared to evaluate their financial and operational impacts. The results demonstrate that schedules aligned with actual physical progress lead to smoother, more predictable cash flow profiles, lower financial risk for both contractors and clients, and greater resilience to delays. The findings underscore the importance of managing construction scheduling and cash flow as interconnected control mechanisms to support the sustainable delivery of railway infrastructure projects.