Improving Competitiveness of a Construction Company

Competitive edge is a multifaceted problem for any construction company. One of the problems is that evaluation of competitiveness has to be an important phase in selecting the subcontractor for state or municipal contract. This will both reduce risks and improve efficiency of state investment. This view on the problem of competitiveness evaluation is rather new and its solution can be made within the framework of the cost-oriented approach. We suggest that the focus should be made on the structure of the construction company’s assets that ensures the necessary cash flow volume for fulfilling the state municipal contract. The first step should be the analysis of that structure and searching the possibilities to optimize it along the criterion of maximizing the possible changes of cash flow as a result of transactions with some assets. The next part of the investigation describes the procedures for evaluating the influence of the environment. Coefficients of liquidity and risk are used for that. If the coefficient of liquidity is used in its classical form, then the coefficient of risk is defined as the relationship between the assets value of the construction organization and the cost of the construction-assembly works on the contract. In the conclusions of the investigation, alternative target functions are formulated that make it possible to carry out mathematical modeling the processes of improving the competitiveness of a construction company.