by Simplar | Jun 25, 2026 | Business Failure, Business Failure, Financial Management and Risk, Financial Management and Risk, Risk Management
The instrument rated construction company financial management that we have been discussing these past few weeks is not simply a metaphor. Most of the contractors that failed mid-project when my company was completing construction projects for sureties were surprised...
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 13, 2025 | Business Failure, Business Failure, Financial Management and Risk, Financial Management and Risk, Risk Management, Weekly Construction Message
Managing Capital Risk Recognizing the reality that there are multiple types and magnitudes of capital risk in construction is the first step in risk management. You may be familiar with the term risk prevention, but in fact, we can’t prevent risks from...
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 | Aug 28, 2025 | Built Environment, Business Failure, Business of Construction, Business, Strategic & Project Planning, Business, Strategic and Project Planning, Financial Management and Risk, Financial Management and Risk, Growth, Growth, Leadership, Risk Management, Risk Management, Weekly Construction Message
We begin this week with the first “belief” on last week’s list – “Growth is always good “. The complex nature of the construction industry seems to lend credence to this belief. Since a construction business does not enjoy a...
by Simplar | Aug 7, 2025 | Built Environment, Business Development, Business Failure, Business of Construction, Business, Strategic & Project Planning, Business, Strategic and Project Planning, Financial Management and Risk, Growth, Leadership, Weekly Construction Message
In last week’s message I closed my eyes and dropped a bomb. Did you hear it? If not, I suggest you go back and reread last week’s message. For me to admit to my readers that construction financial accounting is, to a large degree inaccurate, is I assure...
