by Simplar | Jan 17, 2025 | Business, Strategic and Project Planning, Project Selection, Project Selection, Risk Management, Weekly Construction Message
Profitability in construction begins with project selection. Ours is the only industry that signs a binding contract to sell our service for a fixed price, not knowing exactly what it will cost to provide that service. What’s worse, we bid in a highly...
by Simplar | Feb 1, 2024 | Built Environment, Labor & Labor Issues, Leadership, Project Selection, Weekly Construction Message
There is no time like the present. 2024 is our year to improve profit margins, increase cash flow, and stabilize our businesses. We will begin at the beginning when we prepare bids and sign contracts. This is the first tentative step we all take into the mine field of...
by Simplar | Jan 25, 2024 | Project Selection, Project Selection, Risk Management, Risk Management, Weekly Construction Message
I have railed against low bid contracting for many years as the root cause of shrinking contractor profit margins and increasing contractor failure. In principle, it is an insane way to do business (selling a product for the lowest price rather than the highest price...
by Simplar | Aug 31, 2023 | Business of Construction, Business, Strategic and Project Planning, Project Delivery, Project Selection, Weekly Construction Message
A Flawed Business Model Thomas C Schleifer, Ph.D. Construction organizations often select projects to fill their growth goals, satisfy their need for immediate cash flow, capture work near their headquarters, keep their crews busy, serve owners they have worked for...
by Simplar | Aug 17, 2023 | Business, Strategic & Project Planning, Business, Strategic and Project Planning, Business, Strategic and Project Planning, Project Selection, Project Selection, Project Selection, Weekly Construction Message
The Death of Expertise Thomas C Schleifer, Ph.D. The invention of the internet, powerful search engines, and the cellphone have made supposed experts of almost everyone. Some doctors are actually retiring early because they are tired of arguing with patients who use...
by Simplar | Aug 10, 2023 | Project Selection, Project Selection, Risk Management, Risk Management, Weekly Construction Message
“Ya Puts Up Ya Money…Ya Takes Yer Cherce” Thomas C Schleifer, Ph.D. So says Charles Dickens’ racetrack tout in his native cockney accent. This colorful character in Dickens’ 19th century novel describes construction contracting more accurately and concisely than all...
