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Risk Minimization
Risk Minimization
(Part 2)
In last week’s blog, Construction’s No-Win, research data led us to the conclusion that risk cannot be effectively transferred in contract negotiations and that only highly competent contractors can manage risk for all stakeholders. “Risk is best managed through cooperation not confrontation.”
The Current Discussion
… Read the rest “Risk Minimization”
The Surety
The Surety
Construction’s “Sports Book”
Sureties operate the “sports book” for the construction industry. They handicap risk by setting rates and issuing bonds. They “book” the contractor’s bet that he will complete a project as contracted. They “set the line”.
Growth Risk – Working Outside Normal Expertise
In our … Read the rest “The Surety”
Key Personnel Retention
Key Personnel Retention
Growth Risk Factor Four
Thirty years of research into the causes of contractor failure has revealed that when companies aggressively participate in growth construction markets, they encounter five recurrent and industry-wide elements of risk to potential profit or failure. We have discussed the first three in recent … Read the rest “Key Personnel Retention”
Cash is Slippery
Cash is Slippery
For the past few months we have been dealing with the risk factors hidden in growth markets and the risk mitigation techniques that construction management might employ. Now it is time to cut to the chase and identify the mother of all risk –
RUNNING OUT OF … Read the rest “Cash is Slippery”
Current Construction Recovery
Current Construction Recovery
Top Line vs. Bottom Line
Since 2012 the construction industry has been enjoying a robust recovery. In this blog I have been alerting contractors to the business risks hidden in the euphoria of construction market upswings. Now that we are years into the recovery, it is time … Read the rest “Current Construction Recovery”
Expertise Project Delivery – A Best Value Approach
Expertise Project Delivery
A Best Value Approach
A recent article in the Engineering News Record, exposed the growing pains that have developed as prequalification procurement tools are transitioning to digital formats.
“New third-party prequalification tools have brought fresh frustrations related to fairness and cost, say bidders…
“With new electronic prequalification … Read the rest “Expertise Project Delivery – A Best Value Approach”
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