by Simplar | Oct 19, 2023 | Business of Construction, Project Delivery, Risk Management, Risk Management, Weekly Construction Message
The two major risk factors built into contracting: 1) Chronic under-capitalization 2) Highly complex transaction Chronic Under Capitalization Every contractor I have worked with over these past 40 years has been plagued by cash flow problems at one time or another....
by Simplar | Oct 12, 2023 | Business Development, Business Development, Business, Strategic and Project Planning, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Growth, Growth, Weekly Construction Message
Capital capacity is just a fancy way of saying having enough cash around to finance projects ongoing plus projects under consideration. The construction industry is grossly undercapitalized. This, I believe, is the primary risk factor that contractors deal with daily...
by Simplar | Sep 21, 2023 | Business Failure, Business Failure, Risk Management, Risk Management, Risk Management, Weekly Construction Message
If you say “contracting” to anyone they immediately think of “construction”. The “building” industry has become identified with the signing of a contract at the point of sale. “Builders” have become “contractors” in the eyes of the public. This misidentification has...
by Simplar | Sep 20, 2023 | Business Failure, Business Failure, Financial Management and Risk, Financial Management and Risk, Financial Management and Risk, Partnering, Planning, PM, Weekly Construction Message
Risk Mitigation Thomas C Schleifer, Ph.D. Thirty-five years ago, I initiated research that resulted in ranking construction contracting #2 in business failure rate (restaurants are #1). That data inspired me to begin ongoing research into the causes of construction...
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 24, 2023 | Built Environment, Business of Construction, Project Delivery, Weekly Construction Message
Managerial Maturity Thomas C Schleifer, Ph.D. Back in the day when I started as a contractor, construction was still considered a custom product and my brother and I enjoyed sufficient profit margins despite our inexperience and limited management training. In other...
