“Pihl files for bankruptcy after ‘too aggressive expansion”

This story caught my eye this morning because it has a number of key points that I would ask all Specialist Contractors to bear in mind.

Pihl says; “The expansion took place without sufficient balance in the contract terms and without having sufficiently verified the credit quality of the foreign customers and sub-contractors, and without making sure that the qualities of the work processes and the risk management procedures were sufficient to support the increase in activity.”

Woah, so many key points in one comment…

“….sufficient balance in the contract terms” Please don’t enter into contracts unless you understand the terms and the risk they pose. Please see http://www.streetwisesubbie.com/contracts

“…without having sufficiently verified the credit quality of the… customers” Please make sure you check out every potential customer/contractor’s status properly. Please see how we can help via Top Service http://www.streetwisesubbie.com/top-service-credit-reference-agency

“…without making sure that the qualities of the work processes and the risk management procedures were sufficient to support the increase in activity” Please don’t assume that your current procedures and what you are doing now will work if you are increasing your turnover. Take a look at http://www.streetwisesubbie.com/books for a cracking read for Specialist Contractors on all such matters.

And please make sure that every Specialist Contractor you know joins over 1,400 colleagues in our exclusive group on LinkedIn. Here’s the link; http://linkd.in/cvfM9X

Advertisements