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Financial Stability

Financial stability is crucial for protecting a project and business, requiring assessment of a subcontractor's past job history and contract sizes. Key parameters to evaluate include bankruptcy history, expected annual revenue, current workforce size, work backlog, and capacity for the job. Understanding a subcontractor's finances helps in assessing the associated risks of hiring them.

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19 views1 page

Financial Stability

Financial stability is crucial for protecting a project and business, requiring assessment of a subcontractor's past job history and contract sizes. Key parameters to evaluate include bankruptcy history, expected annual revenue, current workforce size, work backlog, and capacity for the job. Understanding a subcontractor's finances helps in assessing the associated risks of hiring them.

Uploaded by

ahbaajadeioo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Financial Stability

This is another important aspect of protecting the project and your business. It may not seem as
important as safety, but it shouldn’t be overlooked, either. Request some information on the past
job history, including their past few contracts and the size of the largest contract they performed.
The parameter include the following:
 Has this contractor ever filed for bankruptcy?
 What is their expected annual revenue volume?
 How large is their current workforce?
 Do they have a work backlog?
 Do they have the capacity for this job?

Having a clear picture of a subcontractor’s finances can help you assess the amount of risk you
may be taking by hiring them.

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