Early warning signs for distressed projects

There are many factors that can affect a project outcome such as management practices of the contractor, involvement and response of the owner, design change and design errors, and procurement delay. It is important for contractors and owners to be able to detect and rectify project stress as early as possible. This paper presents some factors, which if present would enable contractors and owners to predict the outcome of the project. To achieve this purpose, 116 projects were researched and analyzed. The probability of a project becoming distressed is calculated using a logistic regression model, which can be applied to a project early in the bidding process. The results of this paper are of value to owners, electrical and mechanical contractors, and construction managers.