The supply chain suffers.
In construction, materials go up.
Higher prices means tightening belts.
And when we tighten belts, we cut corners.
What we’re facing now is predicted as a global recession.
Great, just when you think Covid was the worst thing hiding under your bed.
The knee jerk reaction is to stash any excess money under the bed, along with a global pandemic, war, that old Chemistry textbook, and the demon monster you’ve been harbouring ever since you first watched The Exorcist.
This may seem like saving money for that all-important rainy day, but there’s a reason construction has the highest insolvency rate than any other sector – which is what I discuss in this video.
Many reasons for insolvency are because contracts aren’t properly managed. And clauses that address inflation, escalation, and so on, aren’t ironed out.
These small oversights have a compound effect.
Our job is to analyse any factors that may cause the compound effect to work against you, so that you aren’t playing Russian Roulette with your business.