Well here we go again with another Contracting business going...

Well here we go again with another Contracting business going bust. And it won't be the last one. Looking at all their announcements over the last year, this surely must the most incompetent board on the whole ASX. All the news up to the first trading halt on Nov 4 was positive, including an MD's presentation on Oct 21. Then the bombshell of the the 2 contracts with massive issues. Note that they highlighted that the contracts were due to the CTEC acquisition in Jan 2012, as if it wasn't their fault they were lumbered with this mess. So, I assume, someone had done due diligence on this proposed acquistion in the months leading up to the acquistion, sometime in 2011. Then, more than 2 fricking YEARS after you first looked these contracts over you find you have a massive problem??? After working in contracting businesses for more than 30 years nothing changes. You have people quoting ridiculous prices to win business and down the track you find you cannnot possibly get the job finished without a massive loss. The tip is if you want to buy a Contractor make SURE they have abslutely robust tendering and contract management processes. I note thet the Forge Annual report had about 25 pages on Remuneration Reporting and Corporate Governance. Perhaps Reporting Standards could include just 1 page on how you bid and run contracts. At the end of the day that's all that matters for these type of companies. Buyers beware!