Risks of interaction with contractors in the construction industry

Abstract

The article is devoted to the specifics of forecasting the risks of interaction with contractors in the construction industry. Due diligence in choosing contractors is necessary when working with business partners in any industry, but in the construction sector it is of particular importance. This is due to the specifics of the interaction of contractors in construction and the high degree of dependence of the timing of work and the economic entity's own reputation on the quality and timeliness of services provided by the subcontractor or service organization. The article proposes a typology of counterparties, which allows us to determine the main risk factors of interaction with each type of business partner. The identification of these risk factors will determine the further trajectory of interaction with the counterparty and ways to minimize possible business risks. CZU: 330.322.5:624; JEL: M49; DOI: https://doi.org/10.53486/isca2024.38