by Simplar | Dec 26, 2025 | Built Environment, Business Failure, Business of Construction, Business, Strategic & Project Planning, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Leadership, Leadership, Weekly Construction Message
In my experience, construction firms do not operate under firm budget disciplines like most other industrial concerns. Contractors usually craft project budgets in advance but rarely use them as a management tool. Because of the complexity and variability of each...
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 | Jul 17, 2025 | Built Environment, Business Failure, Business Failure, Business of Construction, Cash Flow (Getting Paid), Financial Management and Risk, Financial Management and Risk, Leadership, Risk Management, Risk Management, Weekly Construction Message
Managing cash flow in a construction company is a daunting task. The unique nature of the construction transaction makes it almost impossible to match cash flowing in with cash flowing out. Low bid margins are often so tight they’re insufficient to maintain ongoing...
by Simplar | Apr 10, 2025 | Business Failure, Business Failure, Business of Construction, Business, Strategic and Project Planning, Leadership, Weekly Construction Message
My portrayal of the start-up process of most mom-and-pop contracting firms (which represent a huge portion of the $ 2.1 trillion industry) in last week’s blog was meant to describe the natural recruiting and training process that founders engage in as firms...
