Summary 

The article reviews the financial risks characteristic of the construction sector and modern approaches to assessing the probability of insolvency. The aim of the research is to develop a methodological framework for bankruptcy risk prediction that is adapted to the specific features of Georgia’s construction industry. Both theoretical and empirical methods are employed, including the testing of Altman’s, Springate’s, and Zmijewski’s models, as well as the analysis of additional financial ratios. The findings indicate that the use of international models alone requires the inclusion of local indicators. The proposed integrated approach increases forecasting accuracy, reduces errors, and provides a solid basis for effective financial stability management.

Keywords: Bankruptcy, Construction sector, Z-score models, Financial stability, Risk assessment.