Finally we are seeing some improvements in our economy. This good news does not mean it’s time for clients to ease up on their vigilance in choosing a contractor or monitoring their current contractor.  Some businesses that have been able to “hang” through the worst time may not have sufficient energy or resources to continue to flourish. This is the time we may start seeing such companies quietly closing their doors.

How do you know if your contractor is in a weakened position?

If your contractor is straying from its basic business plan through any of the following actions, it may be a warning sign of business failure:

•    Choosing construction projects in which it has no experience
•    Choosing construction projects that are too small or too large
•    Choosing construction projects that are outside its geographic area
•    Bidding projects, when before it would only negotiate or perform design-build projects
•    In reducing overhead, it has lost long-standing employees who ensure that past mistakes are not repeated
•    In reducing overhead, it has lost employees with the energy to achieve project success

Companies such as MSR Contractors that start with a business plan for success do not vary that basic business plan. Companies that have departed from their basic business plan are signaling their distress. Be on the lookout. Ask the tough questions to avoid later headaches with your project.

As always, if you have questions or would like to discuss this topic, contact me personally at 505-934-1577, mickrich@msrci.com. Or, submit your opinion below.