Factors Contributing to Business Failure in the Construction Industry

As a result of failures of construction companies, economies, owners, governments, creditors, and surety companies receive losses in the form of unfinished projects and responsibilities. Researchers have historically used arbitrary insolvency causes or data that is not readily available to predict construction business failure. In large numbers of studies, it has been demonstrated that identifying the critical factors contributing to the failure of construction businesses does not have a holistic framework, and that such a framework is necessary. As a result, a scoping review study was administered on critical factors contributing to construction industries business failure. Several factors have been discovered as contributing to business failures for construction firms based on research results which will be explored using a scoping review and will be illustrated with a thematic analysis. Additionally, future research is essentially needed to explore some poorly studied critical factors, such as how human capital are organized and managed in an insufficient manner which contribute to construction business failures. Due to the integration of previous works and the use of results for knowledge advancement, the findings presented here are significant contributions to the area of study about business failure in the construction industry. According to the guidelines presented, areas where excessive research occurs will be closed, and areas where further investigation is appropriate will be revealed.