Construction Financial Management

Construction financial management

Contents
Construction financial management................................................................................................1
Introduction......................................................................................................................................3
1. Evaluation of the characteristics of a generic construction business financial management
system..........................................................................................................................................4
2. Analysis of the limitations of the financial management of SME contractor which leads to
insolvency or the business failure................................................................................................5
3. Analysis of the effective approach for managing financial requirement for the SME
contractor to avert insolvency......................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

Introduction
The financial statement in the companies are important so that the financial health of the
company can be depicted. The term financial management is defined as the source that is used by
companies to allocate the financial resources. It is seen that the construction companies are
considered to be different from the most of the companies and the management of the financial
aspects are different in this form of industry. It is the issue in the construction industry that many
companies that run a business does not engage themselves in the financial matters due to which
they are not able to achieve success in the industry (Burtonshaw-Gunn, 2017). While this is seen
that the term financial management is considered to be critical factor of the company through
which the business of the company is managed. This report is based on the issues that arise in
front of the SME construction financial management companies in UK. The characteristics of
business financial management system is analysed in this report. Also the limitation of the
financial management in SME contracting which leads to insolvency of the contractors has been
analysed. Also the recommendation of the effective approach for managing financial
management specifically suited for SME contractors has been identified.