by Simplar | Jan 29, 2026 | Built Environment, Business of Construction, Organization Transformation, Partnering, Planning, PM, Project Delivery, Project Selection, Project Selection, Project Selection, Weekly Construction Message
Decision tree analysis is not a scientific way to make decisions but rather a visual representation of the decision-making process that goes on inside the head of decision makers. At first, a decision tree appears as a tree-like structure or graph with different nodes...
by Simplar | Dec 26, 2025 | Built Environment, Business Failure, Business of Construction, Business, Strategic & Project Planning, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Leadership, Leadership, Weekly Construction Message
In my experience, construction firms do not operate under firm budget disciplines like most other industrial concerns. Contractors usually craft project budgets in advance but rarely use them as a management tool. Because of the complexity and variability of each...
by Simplar | Dec 18, 2025 | Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Managing Subcontractors, Weekly Construction Message
One of the things that frustrates me about the relationship between contractors and owners is that owners act like they’re doing us a favor by letting us take all the risk in the financial transaction. It’s as if contractors are not trustworthy and owners...
by Simplar | Dec 11, 2025 | Built Environment, Business of Construction, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Organization Transformation, Partnering, Planning, PM, Project Delivery, Weekly Construction Message
“The ultimate measure of performance is not what is earned, but how the earnings are used to increase a construction company’s value.” (The Business of Construction Contracting, Thomas C. Schleifer, Aaron B. Cohen, Wiley, 2025 The only way for small...
by Simplar | Nov 6, 2025 | Business of Construction, Cash Flow (Getting Paid), Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Managing Subcontractors, Weekly Construction Message
Contractors handle large amounts of money but get to keep only a very small portion. In this way, the construction financial transaction imposes yet another unintended role and risk on contractors. They are functioning as fiduciaries at great expense to themselves. As...
by Simplar | Oct 2, 2025 | Financial Management and Risk, Financial Management and Risk, Risk Management, Risk Management, Weekly Construction Message
Risk management begins with recognition, proceeds to evaluation, and ends with a detailed mitigation plan. This analytical process should begin at the project selection stage. After a contract is signed and a project is underway, if there is a negative impact from the...
