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Construction firms challenged as business shrinks, cashflow hit

Razor-thin margins appear to be Achilles heel; but new legal developments hold out hope for smaller companies facing insolvency

Domino effect: When a main contractor is in trouble, smaller firms down the food chain will have difficulty keeping afloat given their tight margins and cashflows.


THE beleaguered oil and gas industry has barely started to climb out of the hole when another major business sector - construction - is headed for dark times, with increasing liquidations and collapses.

Backed into a corner by a shrinking market and cashflow gap, at least...

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