Table of contents
- To what extent can developers assess the financial stability of a contractor before appointing them?
- Are there concerns contractors can present themselves as more financially stable than they really are by transferring capital between projects?
- To what extent do the standard construction contracts (JCT, NEC3 etc) affect the financial stability of contractors?
- Would the sector benefit if contractors had to have a certain amount of capital reserves to ensure they could survive short-term financial instabilities?
- Are sources of credit sufficiently open to contractors? What could be done to improve the financial stability of contractors?
Article summary
Construction analysis: Sarah Elliott, partner at Wedlake Bell, looks at some of the cash flow issues faced when appointing contractors in the construction industry.
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