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Title: Towards effective client procurement: assessing contractor risk with financial ratios
Authors: Edum-Fotwe, Francis Tekyi
Price, Andrew D.F.
Thorpe, Tony
McCaffer, Ronald
Keywords: Procurement
Contractors
Clients
Ratio models
Insolvency
Construction industry
Issue Date: 1997
Publisher: Conseil International du Bâtiment
Citation: EDUM-FOTWE, F. ... et al., 1997. Towards effective client procurement: assessing contractor risk with financial ratios. Proceedings of 1997 conference of CIB-W092 Procurement Systems commission, Procurement: a key to innovation, Montreal, Canada, 20-23 May 1997, pp.163-173.
Abstract: Evaluation of the contractor by client organisations forms a very crucial part of the client's procurement strategy for construction services. Current practice in undertaking such an evaluation often employs factors that are directly project-related. More important in this regard is the overriding influence of the tender price as a criterion for contractor selection. In the prevailing business climate within construction, the need for such an evaluation to take on board the susceptibility of the contractor's whole organisation to financial insolvency is apparent. This should allow for a clear awareness of the risk of engaging the services of a particular contractor by the client. The paper reviews various financial measures and tools that have been developed, or found application in the risk evaluation of enterprises. It puts forward a case for the incorporation of some of these tools in assessing the overall risk associated with the client's engagement of the services of a particular contractor.
Version: Published
URI: https://dspace.lboro.ac.uk/2134/23897
Publisher Link: http://www.cibworld.nl/site/home/index.html
ISBN: 9780968221501
0968221505
Appears in Collections:Conference Papers (Civil and Building Engineering)

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