Purpose This study aims to develop benchmarks of the financial performance of contractors and a decision support tool for evaluation, selection and appointment of contractors. The financial benchmarks allow contractors to know where they are relative to the best-performing contractors, and they can then take steps to improve their own performance. The decision support tool helps clients to decide which contractor should be awarded the project. Design/methodology/approach Financial data between 2013 and 2015 of 44 Singapore-based contractors were acquired from a Singaporean public agency. Benchmarks for Z-score and financial ratios were developed. A decision tree for evaluating contractors was constructed. Findings This study found that between 57% and 64% of contractors stayed in the financially healthy zone from 2013 to 2015. Ratios related to financial liabilities are relatively bad compared with international standards. Research limitations/implications The limitation is that the data is obtained from a cross-sectional survey of contractors’ financial performance in Singapore over a three-year period. Regarding the finding that ratios relating to financial liabilities are weak, the implication is that contractors need to reduce their financial liabilities to achieve a good solvency profile. Contractors may use the benchmarks to check their financial performances relative to that of their competitors. To reduce financial risks, project clients may use these benchmarks to examine contractors’ financial performance. Originality/value This study provides benchmarks for contractors and clients to examine the financial performance of contractors in Singapore. A decision tree is provided to aid clients in making decisions on which contractors to appoint.