Business Survival for the Construction Industry in Tough Times
The key is to identify and control your risks resulting from the insolvency of a developer, a contractor or a sub-contractor.
Survival requires energy, enthusiasm, attention to detail and a hide thick enough to withstand the challenges that the industry will inevitably face.
Over years of experience, we have assisted in the compiling of a list that details Early Warning Signs.
At the development/pre-contract stage
Pre-contract is an early stage where we can objectively foresee any potential losses of key work partners which can be fatal during the project development and work completion stage.
Contract to completion stage
Stay connected with the relevant counter parties. Ensure adherence to program progress and quality control issues.
In the event you are faced with the potential insolvency of a counter party and it has the potential to affect your business, you should:
- Seek to ensure the relevant documentation and certificates are secured and critically, that they are current
- Regularly investigate the quality of work performed by stakeholders and identify key staff
- Identify possible counter party replacements and their availability
- Minimise the amounts and age of the dollars owed to counter parties at risk