摘要：Aims: Financial factors are significantly related to the performance of construction firms. Moreover, total failure of the construction firms is higher than the percentage of failures of firms in other industries. Therefore, this study was conducted to achieve three objectives. First, this study identifies the failure factors of Bumiputera contractors by using ratio analysis. For this analysis, four financial variables were chosen, which are capital liquidity, profitability, debt, and the efficiency of financial management/assets. The second objective identifies the causes of failure associated with the four financial variables. The third objective identifies the elements of effective financial management. Methodology: To achieve these objectives, data collection involved the use of qualitative (ratio analysis and interviews) and quantitative (questionnaire) research methods that led to the concept of triangulation. Respondents to the qualitative study consisted of 6 Bumiputera construction firms, while the quantitative data had 54 respondents. Findings: The findings of the analysis showed the firms had shortage of capital to finance projects, received small profit from construction projects, carried higher debt, and were less efficient in asset management. The study confirmed that capital problems experienced by the firms resulted from the small capital at the start of their business, and the late payment from the clients (progress and final payment). Small profit margin was due to the increase in the prices of building materials, low price of contracts, and delays in project completion. Analysis showed that the higher debt of firms was caused by delays of the payment of the project owner, small capital base, and late receipt of advance payments. Moreover, asset management of the firm was said to be less efficient due to the level of ownership of fixed assets at a higher rate, and the improper management of cash flow. Conclusion: It was observed that construction companies put themselves up for failure without effective financial practices.
关键词：Construction industry; financial management; financial failure; financial performance and construction firms.
