by Simplar | Dec 4, 2025 | Built Environment, Business of Construction, Project Selection, Proposal Writing, Weekly Construction Message
Low bid acquisition has been standard operating procedure in the construction industry, and just about all small start-up contractors are forced to participate or forgo getting any work at all. However, low bid acquisition destroys any reasonable chance of making a...
by Simplar | Nov 20, 2025 | Built Environment, Business Failure, Business Failure, Business of Construction, Business, Strategic & Project Planning, Business, Strategic and Project Planning, Cash Flow (Getting Paid), Financial Management and Risk, Financial Management and Risk, Weekly Construction Message
Construction companies have few investible assets. Contractors are service providers. Over the years they will have acquired some depreciating assets like vehicles and equipment, but vehicles and equipment are only used to generate income and retain limited value...
by Simplar | Nov 6, 2025 | Business of Construction, Cash Flow (Getting Paid), Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Managing Subcontractors, Weekly Construction Message
Contractors handle large amounts of money but get to keep only a very small portion. In this way, the construction financial transaction imposes yet another unintended role and risk on contractors. They are functioning as fiduciaries at great expense to themselves. As...
by Simplar | Oct 16, 2025 | Business Failure, Business Failure, Financial Management and Risk, Financial Management and Risk, Weekly Construction Message
Some years ago, I was the founder and president of the largest international consultancy firm serving the contract surety industry. My company, Construction Management Associates, was formed after the first surety asked me to look at completing a project they had...
by Simplar | Oct 2, 2025 | Financial Management and Risk, Financial Management and Risk, Risk Management, Risk Management, Weekly Construction Message
Risk management begins with recognition, proceeds to evaluation, and ends with a detailed mitigation plan. This analytical process should begin at the project selection stage. After a contract is signed and a project is underway, if there is a negative impact from the...
