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 | 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 30, 2025 | Business, Strategic & Project Planning, Business, Strategic and Project Planning, Financial Management and Risk, Financial Management and Risk, Leadership, Leadership, Weekly Construction Message
I have been wrong in my criticism of contractors for ignoring financial statements in the day-to-day running of their businesses. Their instincts, as it turns out, have served them well. They saw something flawed in relying on interim financial statements that were...
by Simplar | Oct 23, 2025 | Built Environment, Business of Construction, Financial Management and Risk, Financial Management and Risk, Leadership, Risk Management, Risk Management, Weekly Construction Message
Businesses fail for any number of reasons but rarely is it a surprise to management. Only construction companies seem to experience sudden collapse when they unexpectedly run out of cash. The element of surprise expressed by most of the failed contractors I worked...
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 9, 2025 | Built Environment, Business of Construction, Financial Management and Risk, Financial Management and Risk, Leadership, Weekly Construction Message
The earliest known instance of human engineering was discovered at Kalambo Falls, Zambia and dates to about 476,000 years ago. Researchers found two logs notched and interlocking forming a simple stable structure. The first examples of human commerce were simple...
