What causes business failures in the construction industry?
Kangari (1988) investigated the effect of macroeconomic factors on business failures in the construction industry, and developed a model for evaluating and forecasting these failures. Russell and Jaselskis (1992), and Abidali and Harris (1995) also developed prediction models.
What makes a construction company a risky business?
As construction is a risky business, the possibility of business failure always exists for any construction company. Within this context, construction companies have to consider the critical factors to prevent business failure and continue to survive in the industry.
What causes a construction company to go bankrupt?
Poor management practices, unqualified subcontractors, and lack of communication are some of the critical reasons that can negatively affect the business in construction and thus result in failure. The aim of this study is to investigate the critical factors causing construction company failure.
What was the growth of the construction industry?
In 2007, the average three-year revenue growth for construction firms was 195 percent—but in 2014, that average growth more than doubled, reaching 403 percent.
Who are the leaders in the construction industry?
As a leader in the U.S. commercial construction industry for 76 years, the firm has worked on dams, power stations, and railways as well as the Pentagon Memorial.
How does company failure affect the construction industry?
Company failure is not only extremely disruptive to an industry but may also cause significant rippling effects in an economy. Construction companies are vulnerable to bankruptcy due to the fragmented nature of the industry, high competition, the high uncertainty and risk involved, and considerable fluctuations in construction volume.
Who are the largest construction companies in the world?
With roots going back to 1884, Kiewit started as a small firm run by two hardworking brothers before growing into one of the most highly respected Fortune 500 construction powerhouses.