The economy is picking up, the long, great recession is slowly losing its grip on the economy and those construction companies still standing are looking at a brighter future. That sad, I have been slinging performance bonds for a living for close to thirty years. I have been through a few economic cycles during my tenure and a good construction economy can be as damaging as a bad one. Below are some of the more common reasons contractors fail.
Construction is risky business. Improve the odds of success by avoiding these pitfalls. Incrementally take on more work, and bigger work. Geographic expansion, stick a toe in the water first, don’t bet the farm in a new geographic area. If a company does bonded work, there is a good chance the surety company and/or a competent surety agent is well versed in these and other high risk factors of the construction trade.