Contractors are facing unprecedented challenges in today's environment. This “Elements of Contractor Failure” infographic helps to explain why.
In evaluating a sample of contract surety claim matters over a 10-year period, the following were identified as elements of contractor failure. Elements were identified at the time of the claim and are listed by frequency. There are many cases in which elements were cited in any given instance.
Market focus - 53%
Elements of contractor failure:
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Geographic expansion
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Change in project owner sector
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Working for unfamilar obligees
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Change in project type
Impact of risk factors identified:
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Undertaken a project outside of its established geographical footprint?
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Undertaken work in a new sectore?
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Undertaken work for new and/or unfamiliar obligees?
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Experience signifigant changes in macroeconomic environment?