What I Would Look at in the First Week of a Struggling Construction Company

If I walked into a construction business under pressure, I would not begin with a turnaround presentation. I would begin by establishing what is actually happening.

First: cash. What is in the bank today? What is genuinely due in? What has to go out? What commitments already exist? What do the next four, eight and twelve weeks look like?

Second: work in progress. Which projects are making money? Which are not? What has been invoiced, valued, disputed or retained? Are variations being recorded and recovered?

Third: margin. What did the company expect to make when each project was won and what does it expect to make now? If the answer changed, why?

Then I would look at payroll, suppliers, tax, finance, rent, insurance, equipment and new contracts the company has already committed to start.

Finally I would look at control. Who knows the commercial position of each project? Who can spend money? How often are costs reviewed? Is management information reaching the owner early enough to act?

The first week is not about pretending to have every answer. It is about replacing noise with a reliable picture. Until you understand where the pressure is really coming from, a recovery plan is just a theory.