Scotland’s leading provider of consulting engineering and construction project management services
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In todays construction market place it is all too often that SME’s and tier 2 contractors fail.
The most common factors for this is companies inability to react to confidently and effectively manage their scope. This is primarily due to inefficiencies of the middle management structure and the incorrect resource managing out with their skill set. The reality is that the industry is facing a decline in the very skill set that is required to ensure successful project delivery.
Coupled with the current trading landscape , it is extremely difficult to carve out a margin in todays project environment.
We find more contractors are willing to reduce profit at tender stage in order to secure contracts. Whilst this make for more attractive bidding, it substantially increases the risk of securing margin. Add in an inability to successfully control the project in terms of costs, time and quality, and the risk profile becomes substantially unbalanced.
When the last factors are introduced, the reality is that there is more than a risk of non-profit but a risk to the whole business.