Dredging Projects- Rigorous Financial Analysis and Planning
The small and middle level Dredging Contractors and some clients feel that if a job can be done well on technical parameters, then it will be "job well done ".
However, in a large number of cases - It turns out to be as famous medical joke goes - " Operation successful - Patient Dead". Why it happens?
Dredging is a highly specialised field and needs typical equipment and vessels . Beside, it needs specialised crew , managers and specialised studies to asses and support. (More on these aspects in later posts) and the due diligence on financial aspects somehow takes a secondary role.
It is emphasised that Dredging is a Business like any other Business .It follows the same cycle - Money In - Dredging activities - Money Out.
Thus it requires same Financial planning and monitoring as any other Business.
Not that it is not done, but needs to be more rigorous.
Technical Aspect and Financial Aspect should be in tandem.
First one is done in detail but the second aspect doesn't receive the attention it deserves.
Managing Ones' Cash Flow- is the nightmare of all Dredging Contractors - Do you agree?