Open Access
Strategy for Implementing Financial Planning in Small Business Construction Projects
4
An outstanding construction engineer and technical director at one of Moscow's largest developers, PIK Group. Russia
Abstract
The study focuses on developing a structured strategy for integrating financial planning into small business construction projects, with an emphasis on housing development. Relevance stems from the high sensitivity of small construction firms to cost overruns, late payments and financing constraints, which often lead to liquidity crises and project failure. Scientific novelty lies in combining approaches from SME financial planning and construction project cost management into a single implementation algorithm tailored to small developers. The article describes a phased model of financial planning across the project life cycle, examines typical cash-flow and risk patterns in small construction projects, and presents a simplified numerical example for a multifamily housing project. The research goal is to substantiate practical guidelines for organising budgeting, cash-flow forecasting and financing structure decisions in small construction businesses. Comparative analysis, synthesis of recent empirical studies, and analytical modelling of project cash flows are applied. The conclusion outlines conditions for the sustainable implementation of financial planning routines in practice. The material is helpful for owners and financial managers of small construction firms, students in financial management, and consultants designing financial control systems for project-based SMEs.
Keywords
small construction firms,
financial planning,
construction project budgeting,
cash flow management,
project finance
References
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