Project Selection Is Too Often Driven by Ego

Many contractors believe they can build almost any project that comes their way, but this thinking is one of the main reasons the construction industry has one of the highest business failure rates. This chapter explains how project selection is often guided more by ego and the desire for growth than by sound business judgment. Taking on larger jobs, new types of work, or projects in unfamiliar locations can stretch a company beyond its limits. While growth may feel like success, rapid expansion hides risks—particularly when profits are thin. Cash flow issues can mask problems until it's too late. The author shows how ego-driven decisions can quickly lead to trouble, even for experienced contractors. Real examples of firms that failed after chasing the wrong projects highlight the dangers. The chapter emphasizes that successful contractors must recognize their own limits, avoid unnecessary risks, and select projects based on profitability and experience rather than pride or the belief that “bigger is always better”.