The reputation of construction industry as a high-risk business is due to the high level of business failures which is far beyond those in many other industries. While these failures result from the combination of several factors, the financial-related causes account for a considerable proportion of them, manifesting themselves in low returns, losses and, in some cases, liquidations. . The paper is organized in to four chapters. The first chapter talks about the introductory part with sub-topics; background, statement of the problem, research questions, objective, scope and methodology. The second chapter discusses about the literature review which is the major part of the paper. The third chapter, which is responsible part to show the practice on the local industry, contains the data collection and the discussion of findings. Finally, conclusions and recommendations are forwarded after analyzing the literature and international experience with the local practice. The target groups intended to read this paper are those who are active in the construction industry , students of construction management , regulatory bodies , professional associations and those interested.