Days of Cash on Hand in a construction context measures how long a property development project can continue operating using only its available cash. Calculated by dividing available cash by average daily operating or construction expenses, this metric is essential for property developers in the UK to monitor liquidity, plan cash flow drawdowns, and avoid funding gaps. It provides insight into financial resilience, especially during delays or cost overruns. Maintaining sufficient days of cash on hand ensures projects remain solvent, supports timely payments to contractors, and underpins effective working capital management in property development finance UK.
This sits beneath Working Capital & Runway, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Cash Runway (Months), as both are closely related measures used to assess similar aspects of performance or risk. In funding terms, Days of Cash on Hand (in construction context) is most commonly encountered in connection with Interest-on-Drawn Only within the property development capital stack.
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