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Case Study 010 - Public Works Contractor (Heavy & Highway)
Statistics:
40 year old, second-generation company with history of past profitability. Recent signs of underperforming on projects. Volume of 55 million dollars annually. Last three jobs total in excess of one million in losses. Sales volume is steady. The company has recently undertaken single projects in the $20 mil range, larger than any previously performed. In general, accounting systems are adequately in place. Collections are lagging. Since second-generation management took over, bidding outside of historical area of expertise has occurred. Handoff of awarded contracts from estimating to the field is questionable. Some projects are extremely difficult in nature impacting the cost and availability of insurance and questions about renewal. Three claims and one lawsuit for collection are on the books. Work in Progress calculations are performed inaccurately within the office with little or no input from the field.
"digger" Rating™: 658
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