by Simplar | Oct 12, 2023 | Business Development, Business Development, Business, Strategic and Project Planning, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Growth, Growth, Weekly Construction Message
Capital capacity is just a fancy way of saying having enough cash around to finance projects ongoing plus projects under consideration. The construction industry is grossly undercapitalized. This, I believe, is the primary risk factor that contractors deal with daily...
by Simplar | Sep 20, 2023 | Business Failure, Business Failure, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Partnering, Planning, PM, Weekly Construction Message
Risk Mitigation Thomas C Schleifer, Ph.D. Thirty-five years ago, I initiated research that resulted in ranking construction contracting #2 in business failure rate (restaurants are #1). That data inspired me to begin ongoing research into the causes of construction...
by Simplar | Apr 13, 2023 | Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Growth, Growth, Weekly Construction Message
Managing Working Capital Thomas C Schleifer, Ph.D. As we noted last week, the primary cause of construction business failure is running out of money. Why when contractors run out of money is it so often a surprise? Financing Growth American industry is addicted to...
by Simplar | Feb 2, 2023 | Built Environment, Business of Construction, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Procurement, Project Delivery, Weekly Construction Message
Identifying Risk Thomas C Schleifer, Ph.D. Most contractors are guilty of failing to diligently identify the unique risks in every new job BEFORE they undertake it. One example I often site is a failed project that I dealt with for a surety. The otherwise successful...
by Simplar | Jan 26, 2023 | Built Environment, Business of Construction, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Weekly Construction Message
Keep Your Eye on the Ball Thomas C Schleifer, Ph.D. We are at the beginning of what might be a rocky economic 2023. With the short-term future so uncertain it is critical to avoid running out of money while navigating this inflation fueled (post- pandemic/Russian...
by Simplar | Jan 19, 2023 | Built Environment, Facility Management, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Weekly Construction Message
How Much is Enough? Thomas C Schleifer, Ph.D. In this first series of messages for 2023 we’re looking at how to professionally manage a construction firm’s capital position to ensure enough liquidity to see the firm through an inflation/recession economy that can...
