Does the incorporation of more variables improve the accuracy and flexibility of cash-flow forecasting?

Previous research has demonstrated significant variation in actual cash flow profiles. However, evaluation of traditional cash flow forecasting models indicates that the extent of variation in cash flows is not considerable. This suggests that further variables are needed to enhance the flexioility of the cash flow profiles produced. This paper presents a model designed to incorporate as many variables as possible, without becoming too complex. The model uses fifty variables to calculate the cash flow of individual contracts. Initial testing of the model proved that by incorporating further variables, the flexibility of the model is enhanced. Previous construction projects are currently being used to evaluate the accuracy of the model.