Which choice best describes why monitoring expenses is critical for contractors?

Monitoring expenses is essential for contractors to ensure that a project remains profitable and is completed within the established budget. Keeping a close eye on expenses allows contractors to identify potential financial issues early on, enabling them to make necessary adjustments before it's too late. This proactive approach helps prevent cost overruns that can erode profit margins and lead to financial stress.

By controlling expenses and aligning them with the budget, contractors can assess the financial health of a project in real time. This not only helps in meeting the financial objectives of the current project but also reinforces the contractor’s reputation for reliability, which is crucial for securing future contracts. Therefore, maintaining strict oversight of expenses is vital for sustaining overall business viability and success in the competitive construction industry.