Construction Executive published an article by Partner Robert Mercado and Supervisor Megan Moriarty, about understanding the importance of contract ratios.
By Robert Mercado, Partner, Assurance Services & Megan Moriarty, Supervisor, Assurance Services
Without a proper understanding of the ratios specific to the construction industry, contractors run the risk of compromising their financial strength. This will result in diminished confidence in the company when looking for funding, surety credit and potential customers. It is paramount that these ratios and the relationship they have on financial presence are monitored and adjusted accordingly until project completion.