project losses/repost

Dear moderator I have re-worded the second half..if still not correct I will give up:) .....though I am wondering why you can not criticise a board and exec's- I don't think I have said anything more different than the papers, but then again the papers have huge insurance cover... In any case I can see your point to some degree.

The moderator suggested I repost with some amendments, just re-wording but the message is still in tact -here goes:

Firstly, commiserations to all those who have taken a bath on this stock.... It is never pretty.... I have always watched this stock with interest but never have posted...silver lining is capital or trading losses.... Heads up - and re -build - don't lose hope- I have had to do same a couple of times...

Just some thoughts / comments... I could probably write a book...

Some facts on contracting:
1. Project losses don't just suddenly appear out of the blue and scream "surprise".
2. Detailed Project reviews (especially on large projects) are undertaken monthly with full cost to complete analysis..
3 on a more informal basis the project team conduct weekly reviews of progress.
4. Cash reporting is always top focus of companies with debt, therefore the source of any cash drains or analysis of where working capital is tied up is normally reported at board level.
5. Detailed progress reports are normally submitted to the clients monthly with weekly progress reviews...

So many opportunities for even the most incompetent CEO' s to ask the question!!!

Since 2012 last year many competitors were so surprised at the prices forge was submitting - well below the next bid,... Normally when you win a large project you deconstruct the estimate again to work out optimisations to maximise margin... This process will also highlight any bid errors or under pricing..clients also have a responsibility to reject (or at least question) low ball bids that are significantly less than number 2. ( also the project team who run the job are different to the people who bid/win the job.... First rule of project management- check the estimate to see where HQ has messed up so you don't get the blame!!!

(This ignoring all the commercial risks)

I am of the opinion that all of forges projects across the board were not profitable and unable to pay for the massive overhead..

I think I read in one of the announcements that forge said that it only conducted detailed contract reviews every 3 months,.... This is not appropriate and not that many comparison in the sector I have worked for only have 1/4ly reviews- it's all monthly..

How a board can miss this !!! To this end the shareholders bear some responsibility in the directors they have nominated.. Where was their oversight function - what reports were they looking at during the meetings... Some boards spend most of their time discussing , entertainment budgets, paint colours and office fit out ideas!!

In my opinion clients should encourage responsible tendering.. the bar tender has a legal responsibility to ensure its clients drink responsible and not to serve someone drunk... Same should go for low ball bids.... Find out why the price is significantly less than the next renderer (also why it is so far off the budget prices obtained before official tendering) ...

Ceo's that are at the helm of disasters tend to make their way back to a bigger and better position.

I am all for paying multi million salaries for good CEO's board members and management..I don't even have a problem with lavish junk-its for staff ..after all a good CEO and staff will pay for themselves.... How do we weed the idiot out and keep them out????

I bet everyone on this forum would have had no problem with paying even more for a good CEO if they deliver to employees,shareholders and the community...

Just some thoughts...

Also - I wonder how the staff were told that they had just lost their jobs.