by Simplar | Jul 10, 2026 | Business Development, Business, Strategic and Project Planning, Financial Management and Risk, Financial Management and Risk, Leadership, Leadership, Risk Management, Weekly Construction Message
Warren Buffet was a businessman. He never drove a train, wrote an insurance policy, built an office tower, or miniaturized a computer. He strictly analyzed an existing business’s ability to make a profit over an extended period and invested an appropriate...
by Simplar | Jul 2, 2026 | Financial Management and Risk, Financial Management and Risk, Risk Management, Weekly Construction Message
The unique complex nature of the construction financial transaction cannot be overstated. I make this point repeatedly because my experience working with contractors is they do not see the complexity of the business of contracting the same way I do. The unfortunate...
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 | Jun 18, 2026 | Business, Strategic & Project Planning, Cash Flow (Getting Paid), Financial Management and Risk, Financial Management and Risk, Weekly Construction Message
Managing a day-to-day construction business using the three traditional financial statements alone leaves an important financial metric (Cash Flow) difficult to determine accurately on a real time basis. Using the percentage of completion accounting method results in...
by Simplar | Jun 11, 2026 | Financial Management and Risk, Financial Management and Risk, Weekly Construction Message
The unique nature of the construction financial transaction (total revenues contracted for rather than collected at the point of sale) demands that the three traditional financial statements we have been discussing these past weeks be prepared using the percentage of...
by Simplar | Jun 4, 2026 | Built Environment, Business of Construction, Financial Management and Risk, Financial Management and Risk, Leadership, Weekly Construction Message
Piloting a plane by instruments is the practice of navigating and controlling an aircraft using only the cockpit displays, entirely independent of outside visual references like the horizon or landmarks. It requires precise cross-checking, interpretation, and control....
