Impact of quantity surveying practices towards construction insolvency stimuluses for Sri Lankan contractors

Abstract

When an organization encounters issues in finance and fails to pay off the debts to a company or a person, it is referred to as suffering from insolvency. According to Census Bureau data from 2012 to 2022, construction companies are 1.5 times likely to become a victim of bankruptcy compared to other industries. The rate of failure in construction businesses according to Scott Shane’s 2013 data compilation of Business dynamic statistics does demonstrate that construction companies do have a 65% chance of failing during their first five years. Quantity surveyors as a profession has evolved over the years over areas related to Law, Management, Finance, Valuation to name a few. The Pathway guide Quantity Surveying and Construction suggests Quantity Surveyors should be competent in “Corporate Recovery and Insolvency” and have a thorough understanding in how the insolvency has affected their project and the legal and contractual position of the parties involved. This research study aims at investigating the Quantity Surveying practices being imposed within a project to avoid or mitigate the risks beforehand facing insolvency and going bankrupt through managing and implementing skills and experiences in insolvency matters since the Quantity Surveying practices could directly affect insolvency where the criticalness of these causes within industry could be often neglected or unknown (Ooghe and de Sofie, 2008; Lukason and Hoffman, 2014).