A change from the geographic area in which a contractor normally works is almost as commonan element preceding failure as the change in project size A contractor's primary area maybe onecounty; half a state; three, five or 50 states. Primary area is that area in which the organization has normally operated, is comfortable with and has been profitable. While there are many good reasons for a company to expand into new geographic areas, such as normal growth, lack of work in primary area, and special opportunities, the risks must be recognized and planned for.Again, the question is not whether the organization can build a similar product in a differentlocation. Rather it is whether a profit can be made at it?