<![CDATA[Contractors often face working capital shortages due to a mismatch between expenditure and payment receipt patterns during project execution — a condition known as overdraft, where the contractor's cumulative cash balance turns negative. This study analyzes the cash flow distribution of the office building renovation project ini Sidoarjo (contract value IDR 486,862,518; 12-week duration), measures the maximum overdraft under seven advance payment scenarios (0%-30%), and identifies the most optimal payment scheme for the contractor. The method used is cash flow simulation based on the bill of quantities (BOQ) and the project S-curve. Cash outflow is calculated from direct cost (85% of BOQ) plus indirect cost (5% of BOQ), while cash inflow comes from monthly billing minus 5% retention, with a one-month payment lag. Results show that cash outflow is concentrated in the first and second months (91.29% of total), making the second month the point of maximum overdraft across all scenarios. Maximum overdraft ranges from IDR 215,827,411 (44.33% of contract value) under the no-advance scheme to IDR 118,454,907 (24.33%) at 30% advance, with a nearly linear relationship between the increase in advance percentage and the decrease in overdraft. The 20% advance scheme (IDR 97,372,504) is selected as optimal, producing an overdraft of IDR 150,912,408 (30.99%) while remaining within the limits set by government procurement regulations. These findings are expected to help small and medium contractors choose payment schemes that are safer for project liquidity.]]>
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