Nicholas, J; Holt, G D and Harris, P T (1998) Financial business relationships: A conceptual model for evaluating contractors' creditworthiness. Journal of Financial Management of Property and Construction, 3(3), pp. 17-36. ISSN 1366-4387
Abstract
A conceptual model is presented to assist construction materials suppliers to evaluate contractors' creditworthiness. The model contains variables that should be considered by suppliers when quantifying the risk associated with furnishing contractors credit. It is intended that crediting organisations be able to graphically derive the 'risk profile' of a contractor, thereby enhancing the accuracy by which contractors' creditworthiness is measured. BY understanding and correctly applying the model, materials suppliers will reduce their Probability of incurring bad debt.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | business relationships, construction creditors, contractors, payment, risk |
| Index terms: | business relationship, construction material, accuracy |
| Subjects: | building materials, strategic management, professional development |
| Topics: | Business Strategy, Information Management, Engineering Principles |
| Descriptive scope: | 2 PC |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here