Commentary: How to Avoid the Common Causes of Contractor Failure
Construction firms are failing faster than in recent memory, and the majority of contractor failures result not just from market forces but also from decisions made by contractors themselves—internal decisions that deviate from sound business practices. These mistakes place additional strains on a company’s staff, systems and financial capacity. As deviations from sound business thinking grow, the resulting risks increase exponentially.
Construction is always an extremely competitive business. That fact is not limited to territory or project type. With limited local opportunities available to some contractors, expanding beyond their territory or normal scope of work becomes tempting, but that injects additional risks into the equation.