Pre-bankruptcy settlement represents a crisis management model designed to stabilize business operations through restructuring and refinancing, aiming to return companies to the market as competitive players. Although intended as a temporary measure for rapid consolidation, practice shows that companies, particularly in the construction sector, often spend years in this process, raising questions about its effectiveness. The main objective of this paper was to examine pre-bankruptcy settlement as a tool for crisis management in the construction sector. The research combined theoretical analysis with primary research methods. The theoretical part included an overview of crisis management and the legal framework for prebankruptcy settlements, while the primary research analyzed companies’ financial performance and gathered opinions from key stakeholders through brief interviews. This approach enabled a detailed evaluation of the model’s effectiveness. The research revealed that pre-bankruptcy settlement often fails to achieve the desired outcomes. The primary issues stem from delayed implementation of measures and unsustainable and insufficiently detailed restructuring plans. Furthermore, the analysis indicates that the model does not meet the conditions stipulated by bankruptcy law in practice and does not ensure the long-term stability of companies. Additionally, by slowing down cash flow, pre-bankruptcy settlement burdens creditors, particularly smaller companies, which lose competitiveness and face sustainability risks as a result. The insights gained suggest a need to improve the pre-bankruptcy settlement model to make it a more effective tool for crisis management in the construction sector. These findings not only provide guidance for developing more sustainable solutions, but also encourage further research aimed at creating effective crisis management models.