Industry Business Competence Is Weak

The construction industry excels at building work but struggles with managing the business side of construction operations. Most contractors and executives come from technical backgrounds, with little or no formal training in accounting, finance, or management. As a result, many firms operate on the belief that success is achieved solely by ensuring the work is built correctly. Unfortunately, the industry's high failure rate proves otherwise. This chapter explains why business competence is just as important as technical skill. The author shows how ignoring financial expertise by undervaluing accountants or excluding CFOs from top management decisions can lead to poor oversight and costly mistakes. Real examples highlight how weak business practices cause business failures – not an inability to put the work in place. Contractors must bring business knowledge into their leadership team and treat financial management as an essential function. Contractors need to strengthen the business side of their companies if they want to achieve long-term stability and success.