Smart companies make stupid decisions in a multitude of different ways when it comes to construction. They may know their own industry or service sector better than anyone else, but many of these otherwise excellent firms lose all concept of doing something correct when it comes to dealing with construction projects.
They make selections based upon sole source for materials, equipment, architects, engineers, construction managers and contractors. This raises costs. I have seen a construction management firm receive a no bid, no risk project with a cost plus 12% fee.
They make decisions based upon perceived “bad publicity” on issues. This raises costs. I have seen owners not pursue remedies where they have found improprieties with design, management and contracting firms on projects.
I have seen them make decisions on low cost, get bad results, and then make the same decision on low cost on the next stage. This raises costs. I have seen firms continue with the same architects and contractors on project after project with the similar bad results, then wonder why.
These same firms also demonstrate their “expertise” in construction by trying to carry over their industry or service sector practices and operations into the construction process. This raises costs. I have seen firms make changes at the last minute or after the work was been installed without regard to cost or delays to the project, then wonder why.
Oh By the Way… Sadly, owners involved in projects think they have the advantage because they are so successful in their own business. What they fail to realize is most firms involved in construction are successful in their own right – for a reason – they are great at what they do.
