A contracting company succeeds by executing efficiently and managing cash flow and costs, not by contract size alone. Cash flow gaps can create serious pressure even when projects are profitable.
Key components of the study
- Licensing and classification: the right activity and classification, and qualification requirements that shape which projects you can bid on.
- Business model: general, specialized, infrastructure or finishing works, as main contractor or subcontractor.
- Staff and equipment: technical and admin staff and machinery, and whether to buy or lease.
- Capital and liquidity: working capital for payroll, materials and suppliers until progress payments arrive.
- Pricing and contracts: project costing, margins, payment terms, guarantees, delay penalties and cost control.
- Financial and risk analysis: investment, cash flows, break-even, and the impact of late payments or rising costs.
Key risks
Late progress payments, rising material prices, weak project management, and cost or schedule overruns. A documented track record and stable performance help qualify for larger projects.
