Insolvency -The next Construction Tsunami?
Insolvencies in the international construction industry are a fact of life. They are caused because companies run out of money before they run out of work and may lead to termination of some contracts while others may be allowed to continue. This article deals with; –
• the widely projected increase in construction companies becoming insolvent,
• primary causes of insolvency,
• early warning signs,
• preventative measures aimed at reducing the risk of insolvency,
• the potentially complex issue of insolvency leading to continuance or termination of contracts,
• the role of an appointed insolvency practitioner,
• the role of an appointed Quantum Expert,
• steps to restore the construction company to a secure financial footing. Read More →
You’re Terminated – Get Out of my Site!!
Termination of a construction contract is an action of last resort and can be a traumatic and expensive experience for both the terminating and terminated party. Most forms of contract allow for termination by either the Employer or Contractor with the procedures to be followed being similar. This article examines these procedures together with the need for compelling evidence in the form of records and how the procedures might be implemented in such a way as to avoid disputes arising because of a wrongful termination. Read More →
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Turnover is Vanity, Profit is Sanity, but Cash is King for your Business
Turnover, profitability and liquidity are all functions of and rely upon cash flowing into an entity exceeding cash flowing out. This article examines the preparation of cash flow projections, payment methods and the challenge construction contractors face in endeavouring to maintain a positive cash position. It examines how a preliminary cash flow forecast might be prepared and updated to keep abreast of the effect of the uncertainties involved in any construction project. Read More →
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