As an owner of a construction project, imagine receiving a call from your contractor telling you that they have run out of money and can’t pay for the labor or material to keep your project on schedule. What options do you have? The answer is, “there is no good option!”
So if not having it is bad, what are the benefits of being financially stable? It starts with making your project financing approvals quicker and easier. Lenders want financially stable construction companies used on projects they lend on, as it helps reduce risk. In situations where surety bonds are needed, financially stable contractors have a surety relationship that can provide for these needs without delay.
Financial stability ensures during construction; the project owner is not bothered by untimely requests for money to meet cash flow needs caused by a problem on your project or worse, someone else’s project. A financially stable contractor can focus on your project’s demands and not be distracted by how it is going to “make payroll.”
The Douglas Company is fortunate to have this necessary financial stability. With a highly liquid balance sheet and no long-term obligations, lenders view us in a very positive perspective. Our financial stability provides assurances to project owners that we will be there after the final payment to honor our warranty obligations. The best way to describe the benefits of financial stability is that it provides peace of mind to our clients!
David Bockbrader
Executive Vice President, Administration and Finance
The Douglas Company
