Cash flow management in construction is the process of ensuring that financial obligations within a construction business or project are met, and that there are sufficient funds available to cover expenses. It involves carefully forecasting income, predicting expenses, and planning for contingencies, along with understanding and monitoring bank balances, loan payments, payment terms, and other financial commitments on the part of both contractors and clients. By managing cash flow effectively, businesses in construction can ensure that their projects remain on track and deliver the desired profits.