"Distress in construction and some practical tips that
construction businesses might take in situations when they are
staring down a financial distress situation".
Construction industry stress
This article aims to outline to the readers how the proper
management of situations whereby construction businesses,
developers or related parties operating in a distressed environment
can minimise the fallout of increasing costs and project delays and
look to 'work-out' of the problem if a fast and effective
manner that preserves or protects value for impacted
stakeholders.
The drivers of increasing stress in the industry are many
– extended and unpredictable severe weather patterns, supply
chain shortages, labour shortages and rising energy costs are among
them. Compounded by historically structured fixed-price contracts
that typically favour the developer, there is a recent push to seek
to share this risk in newly entered contracts or revisit the
rigidity and terms of
