ABSTRACT
The prospect of business failure is not a topic most businesses care to acknowledge. In construction however, failure is a real possibility. The construction industry has characteristics which sharply distinguish it from other sectors of the economy. It is fragmented, very sensitive to economic cycles, and highly competitive because of the large number of firms and relative ease of entry. It is basically due to these unique characteristics that the rate of construction business failures has become very high. Understanding the mechanism of failure is key to attempting to avoid failure. Corrective action can not be taken if trouble is not acknowledged or foreseen.
