Managing cash flow in property development is critical for protecting profitability and reducing project risk. Learn how Australian developers can manage construction costs, funding, GST, contingencies and project cash flow more effectively.

Managing cash flow in property development is critical for protecting profitability and reducing project risk. Learn how Australian developers can manage construction costs, funding, GST, contingencies and project cash flow more effectively.

When reviewing a construction contract, most developers focus on the total build price. But the real risk often sits in the fine print—specifically in Prime Cost (PC) items and Provisional Sums (PS). These allowances can significantly alter your final construction cost, and if not properly understood, they can erode feasibility and profit. For developers, understanding Prime Cost vs Provisional Sum isn’t optional—it’s essential for making informed decisions before committing