by Simplar | Jan 14, 2021 | Contractor Default, Contractor Default
Out of Tune A construction project is an intricate labyrinth of independent/inter-dependent craftsmen making carefully coordinated contributions to the finished product over an extended period of time. Perhaps no other human endeavor requires such precise complex...
by Simplar | Jan 14, 2021 | Business, Strategic & Project Planning, Business, Strategic and Project Planning, Business, Strategic and Project Planning
Best Value Construction’s Six Sigma In the 1980s, 37% of all construction projects reported major defects. 37%!!! No manufacturing company would survive a 37% defect rate. By the 1990s, the construction industry suffered 33% of construction projects over budget and...
by Simplar | Jan 14, 2021 | Risk Management, Risk Management, Risk Management
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”....
by Simplar | Jan 14, 2021 | Risk Management, Risk Management
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...
by Simplar | Jan 14, 2021 | Risk Management, Risk Management
Construction’s “No-Win” Risk Management/Transfer A survey of 125 construction owners by Engineering News Recordfound that only half would hire the same construction firm again, a third of all projects were over budget, nearly half were completed late, and 13% were...
by Simplar | Jan 14, 2021 | Productivity
Productivity A Risk Factor Our ongoing discussion of Risk has led us to take a look at labor productivity. One of the most important factors in accurate estimating, planning, and executing profitable contracts is forecasting a productive labor force that can produce...
