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A Framework for Invoice Management in Construction Open Access


Other title
Cash Flow Management
Invoice Management
Lean Manufacturing
Markov Chain
Type of item
Degree grantor
University of Alberta
Author or creator
Supervisor and department
AL-Hussein, Mohamed (Civil & Environmental Engineering)
Bouferguene, Ahmed (Campus Saint-Jean, UOA)
Examining committee member and department
Joseph, Tim (Civil & Environmental Engineering)
Haas, Carl T. (Civil & Environmental Engineering, University of Waterloo)
McDonald, Andre (Mechanical Engineering)
Lu, Ming (Civil & Environmental Engineering)
Department of Civil and Environmental Engineering
Construction Engineering and Management
Date accepted
Graduation date
Doctor of Philosophy
Degree level
Construction project costs are exchanged in the form of large numbers of purchase orders, which translates into many thousands of invoices. In typical contractual relationships, these invoices are exchanged between all parties involved in a construction project, including owners, engineers, architects, general contractors, sub-contractors, and many trades. The research presented in this thesis recognizes two challenges associated with invoice management: (1) the cost of invoice processing, given the involvement of numerous full-time employees from all parties involved in the project; and (2) the cost of delayed invoice payments, which is typically a cost that is consequently added to overall project cost. Ensuring on-time payment of invoices, even when funds are available, can be a challenging exercise due to the variety, the volume, and the unpredictable number of invoices received at any given time. The need for implementing processing protocols to ensure efficient management of invoices as well as procedures to minimize the amount of rework in the process cannot be ignored. This research proposes an integrated model of lean manufacturing with cohort and discrete event simulations, in order to streamline construction invoice processing and payment, ultimately minimizing invoice-processing times and delayed invoices payments. This research also proposes a cash flow management strategy and a project financial support decision model. The proposed methodology is developed, implemented, tested, and validated for two distinct sectors of the construction industry: heavy industrial (oil sands) and homebuilding
Permission is hereby granted to the University of Alberta Libraries to reproduce single copies of this thesis and to lend or sell such copies for private, scholarly or scientific research purposes only. Where the thesis is converted to, or otherwise made available in digital form, the University of Alberta will advise potential users of the thesis of these terms. The author reserves all other publication and other rights in association with the copyright in the thesis and, except as herein before provided, neither the thesis nor any substantial portion thereof may be printed or otherwise reproduced in any material form whatsoever without the author's prior written permission.
Citation for previous publication
Younes, Bashar. Bouferguene, Ahmed. AL Hussein, Mohamed, Yu, Haitao. and Ajweh, Ziad. (2013) "Overdue invoice management: a Lean and post-Lean simulation approach." Proceedings, CSCE Annual Conference, May 29-June 01, Montreal, Canada

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