Complex criterion for evaluating contractor's activities in the construction industry

Abstract

The assessment of the financial viability of the contractor is of particular interest. However, many of existing criteria which are used for analyzing the economic performance of an enterprise are criticized, as the generalized indicators may provide an accurate estimation only for a definite country, or period. Elaboration of a generalized indicator is related to the following tasks: selecting analytical coefficients, determining the structure and parameters of the generalized indicator, and calculating the critical value. The approach used in this paper implies using all known analytical indicators for solving the first task. These relative indicators are then compared with absolute indicators, namely, balance indicators. In the present work this is done with correlation analysis. When determining the structure and parameters, as well as when calculating the critical value of the complex criteria, we used discriminant analysis. A sample of enterprises of the construction complex was considered as objects. The complex criterion for evaluating contractor's activities can be used both for internal analysis and by external users: banks, investors, and counteragents.