When construction companies and clients get it right – through project selection based on their ability to deliver, responsible tendering, diligent monitoring, and a proactive attitude to deal with issues such as cost and timetable overruns – they create contracts that are more profitable and provide more enduring value to society.
The challenge facing the construction sector is that, regardless of the economic climate, contracting can be precarious. The lethal cocktail of low margins and high risks means even the largest firms can find themselves just a few contracts away from slipping into the red. This pressure is further compounded by the longest decline in bank lending for construction companies since 2011 – because of fears of a downturn in the economy and the impact of Brexit – at a time when firms need to manage their debt.
Against this difficult background, our Audit insights report examines four key areas that need to be addressed by construction firms if they are to run sound, well-managed businesses:
- bidding for lasting value;
- delivering for success;
- rebuilding confidence through increased transparency; and
- getting fit for the future.
This report brings together the expert insights of auditors with many years’ experience of independently examining and auditing construction firms from: BDO, Deloitte, EY, Grant Thornton, KPMG, Mazars, The Orange Partnership, PwC and RSM