Why Most Construction Fail

Not maintaining an adequate level of capital has led to the failure of many a construction company. … Without that buffer, construction companies face failure when an unexpected need for capital surprises them. Cash flow management is another major area of concern that can lead to failure for a construction company.

reasons a construction project may fail is due to inaccurate estimates. Miscalculations, specification errors, omissions, excluded permits, and changing market conditions (e.g., prices of materials and labor) can all lead to costly overruns, leaving the contractor stressed and the client unhappy