What could be a significant result of poor cash flow management in construction projects?

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Poor cash flow management in construction projects can lead to the significant result of potential halting of project progress. When cash flow is mismanaged, it may result in insufficient funds to meet obligations such as paying workers, purchasing materials, or covering operating expenses. This can cause delays as workers may not be able to continue without payment, and suppliers may halt the delivery of materials due to outstanding invoices. Such interruptions can extend the project timeline, increase costs, and jeopardize relationships with subcontractors and suppliers.

In contrast, options like increased worker productivity or the ability to bid lower on projects do not typically align with the consequences of poor cash flow; instead, they would generally reflect positive cash flow management. Similarly, less competition for contracts is not a direct result of cash flow issues; rather, it might relate to market conditions or the contractor's reputation. Hence, the impact of cash flow management is most vividly illustrated through the risk of halting project progress.

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