There are inherent risks in all construction projects. Now, more than ever, every aspect of construction is exposed to being upended by economic conditions and extraordinary challenges. The path to successful completion can be challenging to navigate, as challenges come in many forms, such as inflationary pressure on labor, equipment and material, supply chain disruptions, adverse weather events, diminishing levels of experience, and availability of workers. These challenges are beyond and in addition to the ever-present performance and cash flow risks.
With all these financial challenges in play, our industry has seen steady increases in project delays and disruptions impacting contractors with financial pressures in the form of lower profits and periods of negative cash flow. Economic stressors present unprecedented challenges to company stakeholders including banks, sureties, and equity shareholders.
MBP Financial Solutions was formed to bring together analytical expertise as constructors from the perspectives of both operations and finance —to focus on assessing project and company financial health, diagnosing issues, and advising on potential strategies to limit financial risk. We have created a unique suite of expertise that blends real-world experience rescuing distressed contractors and a history managing construction risk as consultants.
MBP, with over 30 years of managing risk on construction projects and consulting as experts on construction disputes, has witnessed firsthand the early signs of financial and organizational stress on contractors and subcontractors, along with the impacts it can have on projects. We bring decades of experience on some of the world’s largest and most complex construction projects, advising on project execution, risk mitigation, and dispute avoidance.
Our leadership team features three experienced construction executives with a proven track record of delivering projects in the field while creatively navigating fiscal and organizational crises left by legacy leadership teams, averting disaster for financial stakeholders.
With the additional leadership of our Financial Solutions Team, MBP brings trusted advisors that can successfully extricate contractors from potentially disastrous outcomes by navigating troubled projects to satisfactory conclusions while limiting financial losses to the stakeholders involved.
Early involvement is essential to the successful trajectory of a project. Our construction experts provide independent assessments of projects experiencing financial distress in three general service offerings:
ScreeningA financial stakeholder with a portfolio of companies or projects needs to know where the trouble is emerging as early as possible. Our team can rapidly digest financial and performance metrics across a portfolio at a project or company level and diagnose issues that warrant further investigation and assessment.
Deep-dive AnalysisAfter identifying areas of concern, our team will determine the magnitude of financial risks, their severity, and how imminent the most likely threats are. We will do so by digging deeper into the project or company metrics, interviewing key personnel, and assessing projects in person. Our recommendations will address adverse circumstances and illustrate prioritized courses of action and likely outcomes.
Execution SupportImplementation of our recommendations may require resources and capabilities that the target company may not possess or have available. Our team can provide augmented management support to assist the existing team with targeted improvements or provide third-party oversight to monitor targeted improvements. MBP Financial Solutions may also be able to take on the direct performance of some aspects of construction.
