Global construction risk review

Bidding and contracting risk

• Risk management in bidding: Effective management and consistent recognition of bidding and contracting risks is essential for project viability.
• Selective bidding practices: Construction businesses are adopting more cautious approaches, conducting thorough prequalifications and more aggressive negotiations on contract terms to effectively mitigate risks.
• Opportunities for improvement: Many firms are experiencing capital capacity challenges and acknowledge the need for enhanced surety usage and capital management strategies, indicating a strong potential for improvement in these areas.