The failure factors of the contracting business from the contractors point of view

Abstract

This article aims at illustrating the major factors of construction firms' failure from the perspective of constructors. Thirty-seven (37) factors are illustrated in this article. The factors are divided under 3 groups: financial, managerial and external. The study used the field survey technique (questionnaire) to collect the necessary data that serves its purpose. Results illustrate that the top 5 contributors are: delay in collecting payments from owner (financial group), poor work experience (managerial group), bidding strategy (managerial group), local political conditions, low profit due to high competition (financial group). Results indicate that the top factors are internal factors which could be handled and controlled by the company itself. The results of this study are the first step towards identifying the problems of contracting companies in order to understand them and try to find solutions that will raise the level of companies and ensure their continuity and success.