What is a primary purpose of conducting due diligence?

Conducting due diligence is fundamentally about assessing potential risks and making informed decisions. This process involves gathering and analyzing relevant information before entering into a contract or undertaking a project. By thoroughly investigating factors such as financial stability, regulatory compliance, and market conditions, contractors can identify risks that may impact the project's success.

Understanding these risks allows contractors to make decisions that align with their business objectives and mitigate potential issues that could arise during the execution of the project. It is a proactive approach to ensure that all relevant factors are considered, which ultimately leads to better project management and outcomes.

While finalizing a project’s design, choosing subcontractors, and determining pricing for materials are all important aspects of a project, they are not the primary focus of the due diligence process. Instead, due diligence lays the groundwork for these activities by ensuring that informed decisions are made based on a comprehensive understanding of the project environment.