Financial Management Practices in Utility Construction Firms

In the spring of 1980, a survey was conducted with utility contrators concerning cash flow and financial management. Emphasis of the survey was placed on the policies and practices of owner agencies, banks, and bonding companies as they influence the financial position of contractors. Additional information was obtained regarding specific company management practices which influence or are affected by the financial position of the firm. A few key financial ratios were also obtained. The data were analyzed to develop a general profile of contractor financial characteristics and experiences. The data were studied further to determine the differences between the effect on contractors of public versus private owners' practices, bank policies for long-standing clients as opposed to relatively new ones, and bonding company practices in dealing with financially sound versus weak contractors.