The creditworthiness of construction companies

Construction companies have peculiar characteristics that distinguish them from manufacturing firms and, in general, from standardized production companies. Their specific features need to be appropriately considered when evaluating the credit risk involved in financing them. Companies operating in the area of public works contracts, in particular, expose their financiers to lower levels of credit risk on average because of the complex administrative regulations in place for awarding public contracts and for containing the phenomenon of tax payment avoidance