“As old as the pyramids” and big enough to affect our GDP statistics on its own, construction still boils down to being able to deliver a unique product of agreed quality at the right price and the right time. Even though estimating and costing techniques, and legal forms are all well-known and largely understood, there are still plenty of instances of under-performance, some of which are fatal.
In our view the problems of the financial management of contracts arise when the directors don’t see true and up-to-date results of contracts. This involves: ensuring that work-in-progress is realistic; looking at the profitability of each stage; ensuring that costs to complete represent expected changes; and ensuring that employers pay the right price for the variations that they require.
We have done this many times. For example:
- Malcolm Durham guided his family’s building contractor out of low profitability by ensuring that performance was accurately measured, and on the back of this success was able to arrange its sale in February 2008.
“FD Solutions got our systems under control. They’re a critical part of the team.”
Andy Lucey, Freight Investor Services