ABSTRACT

A contractor in debt is a liability. It matters not whether the contractor is in the private sector or an in-house DSO. Both will deliver poor services, will record losses and lose contracts. Before termination is considered, any worthwhile client will tolerate some poor performance. To a certain extent, an operational contractor is better than a terminated one. All the work and uncertainty of taking on a new (and often unproven) contractor is a decision not to be taken lightly.