Analysis of the symbiosis of factoring and chargeback in outsourcing of construction processes and real estate management

Abstract

One of the main factors influencing the final cost of construction is compliance with deadlines, as well as the quality of work performed or services provided. Existing mechanisms that guarantee payment or quality of work performed or services rendered become ineffective and protect the interests of only one of the parties involved in the construction process, while the second becomes more vulnerable. The exponentially growing volume of accounts receivable in the construction industry requires new management approaches. The particular importance for the development of the construction industry in the Russian Federation is consideration of interests of all parties involved in construction processes and real estate management. The purpose of this paper is to analyze the possibility of simultaneous use of tools as factoring and chargeback in outsourcing construction processes in terms of improving the effectiveness of financial risk management for the customer and contractor. The relevance of the topic is related to the growth of accounts receivable in the construction sector of the Russian Federation and the lack of relevant research on the use of factoring and chargeback symbiosis in outsourcing construction processes. Up-to-date statistics were collected and the dynamics of changes in the volume of accounts receivable by industry in construction and real estate management were modeled, and based on the research conducted, a comparative characteristic of use of factoring and chargeback was carried out. It is a reasonable conclusion that the mechanisms under consideration perform different functions and are aimed at achieving different goals, while contributing to financial recovery and reducing cash gaps of companies, and the symbiosis of their application is able to reduce the volume of accounts receivable in the construction and real estate management industry as a whole.