by Simplar | Mar 20, 2025 | Built Environment, Business of Construction, Financial Management and Risk, Financial Management and Risk, Risk Management, Weekly Construction Message
It’s tough to build something on time and exactly as specified. It is even tougher to make money doing it. It seems like the deck is stacked against us. A project in progress is like a leaky vessel that oozes money out of every crack. Cracks can appear in...
by Simplar | Mar 13, 2025 | Built Environment, Business of Construction, Risk Management, Risk Management
If risk recognition and assessment is so fundamental to the construction transaction, why do so few contractors engage in formal risk management? This is a question I have been asking myself for 30 years. To begin with contractors are Type A risk takers or they...
by Simplar | Mar 6, 2025 | Built Environment, Business of Construction, Financial Management and Risk, Risk Management, Risk Management
Financial risk is embedded in the nature of construction transactions. Project risk management begins during project selection. Signing a legally enforceable performance contract, for a complexity of services, to be delivered over an extended period, is a high-risk...
by Simplar | Feb 28, 2025 | Built Environment, Business of Construction, Financial Management and Risk, Financial Management and Risk, Risk Management, Risk Management, Weekly Construction Message
Recognizing and assessing financial risks before you sign a construction contract is not an exercise you can ignore. Let’s take a quick look at how a regional contractor uses last week’s Probability and Impact Matrix in everyday business. Risk Factors...
by Simplar | Feb 20, 2025 | Business Failure, Business, Strategic & Project Planning, Business, Strategic and Project Planning, Business, Strategic and Project Planning, Financial Management and Risk, Risk Management, Risk Management, Weekly Construction Message
Continuing last week’s risk discussion: Recognizing, identifying, and measuring risk is a critical pre-bid task. A Las Vegas sports book doesn’t wait to set the line until after the game. A handicapper who failed to take a key player’s injured wrist into account or...
by Simplar | Feb 6, 2025 | Built Environment, Business Development, Business of Construction, Business, Strategic & Project Planning, Financial Management and Risk, Leadership, Leadership, Organizational Change Management, Risk Management, Risk Management, Weekly Construction Message
Contracting is a risky business that works because contractors are risk takers. Every time we acquire a new project we are leaping into the unknown. No one has ever built this next project, and no one can predict its uncertain outcome. Is there uncertainty that the...
