External Causes of Small Construction Firm Failures

Abstract

Significant findings of this thesis include: 1) A much larger percent of construction firm failures, approximately 20%, occur due to non-management causes than was originally thought; 2) Construction firm failures lag increases in the prime rate by about 1 year; and 3) Subs and specialty contractors do not fail at a greater rate than general contractors. The first two findings should encourage contractors and their professional organizations to be more attentive to national economics. This study found the most significant non-management causes for failure are: 1) Economic downturns (Escalating interest rates); 2) Escalating costs; 3) Technical complexity and warranty; 4) Regional differences/ Major commodity failures; and 5) Death of owner. The author provides a failure prevention guide. Construction industry; small business. Theses. (edc)

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Document Details

Document Type
Technical Report
Publication Date
Aug 01, 1989
Accession Number
ADA216886

Entities

People

  • Thomas J. Foust

Organizations

  • Georgia Tech

Tags

Communities of Interest

  • Biomedical
  • Human Systems

DTIC Thesaurus Topics

  • Business Administration
  • Civil Engineering
  • Commerce
  • Computers
  • Construction
  • Contractors
  • Databases
  • Economic Analysis
  • Employment
  • Failure Mode And Effect Analysis
  • Investments
  • Law
  • Manufacturing
  • Money
  • Reliability
  • Small Business
  • Students

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