You’re never too big to fail. No matter how big or previously successful your company is, it’s never too big to fail. In the last few years we’ve seen companies like Fluor and Granite struggle with large jobs and finances. As a result, high level executives were let go and the companies restructured. Another company, CH2M struggled so badly on a couple of construction projects that they sold to Jacobs for a good price to cover debts. More recently, McDermott International filed Chapter 11 Bankruptcy. It had been one of the larger construction firms around. Now it is breaking up and selling a division to private investors to generate cash to cover debts and support ongoing projects. One reason noted for financial losses is bad estimates. Translation: increased costs on fixed price contracts have caused them to lose money or on negotiated work pricing has exceeded client budgets to the extent that contract cancellation occurred.
Check out this ENR article for more info - https://www.enr.com/articles/48410-update-contractor-mcdermott-international-files-chapter-11
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