Construction industry is of particular importance in the Republic of Croatia due to its impact and contribution to country's economic growth. Considering the nature of this industry, and dependence on the economic situation it is understandable that the industry was significantly affected by the economic crisis. As per already established standards, the large contractors and entrepreneurs whose sale prices are highly quoted on the stock exchange market are required to follow the International Accounting Standard 11; while micro, small and mediumsized enterprises and contractors are obliged to follow Croatian Financial Reporting Standards 15 and 16 when it comes to Construction Conventions. When discussing the obligations of the contractors engaged in the civil engineering work, all the agreed workload has to be performed in accordance with the Construction Contract. Once the contractors reach the preestablished deadline listed on the balance sheet, it is necessary to evaluate the progress and establish if the extension would be necessary for full completion of the facility. The case study company from this thesis, Chrile d.o.o elaborates further on this concept, providing the information that during the economic crisis they were not able to collect claims from their client. Instead, the contract-imposed costs were identified as expenses that occurred within the given timeframe, while the revenues were recognized only below the costs amount. In cases when the revenue was collected, the amount was charged based on the completion stage of the inquired facility or the site. During 2014, the crisis peaked, and the company had the worst performance, consequently closing the fiscal year with the loss. This was followed by the new strategies, such as the wage reduction in the following year, leading to the profitable closure of the fiscal year. While in 2017 Chrile d.o.o has increased its profits, in terms of liquidity and indebtedness it is still lagging behind its competitors (including the same size construction companies).