Failure to receive timely compensation for work performed puts a severe strain on a contractor's working capital and can lead to severe cash flow problems. Poor Internal Communications. Poor internal communications between project sites and the home office plague many construction companies. Consequently, there may be little warning of project execution problems or financial difficulties. In most cases, it takes only one or two disastrous projects to bring down a company.
Early warning is essential if corrective action is to be taken in time.
Many contractors do little marketing, but focus on selling their services. Marketing involves everything a company does to retain and attract customers. Hard selling is of little value unless the firm has a reputation for quality customer service. Many contractors have difficulty packaging and presenting winning proposals, whether written, oral, or both. Good presentation skills are extremely critical to effective marketing.