Critical Factors Causing Contractor's Business Failure in Gaza Strip

Khalid Al Hallaq


The construction industry remains a major player of the Palestinian economy. Business failure is an important issue for companies in the Gaza Strip uncertain environment. This paper aimed to explore the critical factors that have the potential to cause contractor's business failure and to determine their level of severity from contractor's viewpoint. This paper has considered. Critical factors were listed under five groups: financial and political, contractual, managerial, organizational, and economical causes. Contractors have been advised to consider the most critical factors that have the potential to cause business failure. The most critical factors include: cost of materials, lack of resources, delay in collecting dibs from clients, monopoly, changing funding sources, dealing with suppliers and traders and Israeli attacks.


Business failures, Contractors, Construction industry, Contracting failure, Construction in Palestine, Gaza Strip, Factor analysis.

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