Construction firms are the most optimistic companies in the world. They bid on projects and enter into construction contracts where conflict is inherent and the terms are loaded against them. The commercial terms of the contract can consume page after page of small print. These pages should be reviewed carefully prior to submitting the bid [...]
Let’s get things in perspective. No dispute is going to get resolved amicably. The lawyers, judges and arbitrators may know of and respect one another; however the parties in dispute are usually at each other’s throats. Then there are the experts for each side. They are fair game for the other side. By this I [...]
Perhaps the title on this one should be the Competitive Advantage Everyone Needs. In the previous blogs on this subject the responders mentioned innovation and better ideas by the contractors. If they have one, keeping it secret was one option. The thing is, cheating on the specified materials and workmanship is not a competitive advantage. [...]
My recent blog on The Competitive Advantage Nobody Needs generated some interesting responses on ENR.com. There were some very insightful comments, even from the one responder that thinks everybody is a crook in the construction industry. Bidders that short circuit the specifications are taking something of value from the owner of the project. In the [...]
I just had it reinforced that technology solutions are still dependent upon the nut behind the wheel (user). I recently moved up from a 10 year old vehicle to a new one with interactive computer controls for almost everything imaginable. The same applies to technology solutions in construction – be it in the field or [...]
Have you ever noticed that some companies seem to make it impossible to sign a contract? This happens a lot in construction. Whether it is a standard form contract, modified standard or completely customized set of contract documents, some terms can make it not worthwhile to pursue. It recently happened to us. A major firm [...]
Recently I was asked if design-bid-build yields the “least expensive market” factor in change orders and/or any subsequent claims/litigation. It is my belief this is a resounding “Yes.”, to the question. By its very nature the design-bid-build procurement process is a competitive one where all of the competitors are bidding on the same scope of [...]
Is there room in the construction market for cheap? After all, cheap really has a couple of meanings. How about when cheap is low in price and worth more than its cost? This has a place in the market for the buyer. The phrase, “I bought it cheap!” can be thought of as bragging when [...]
Protecting the Owner’s GMP Interests In some respects auditing a GMP contract for the owner should not be necessary. The owner has placed their trust in a firm that has promised to look out for their interests on the project. So why bother to audit? Well, there are many reasons. A simple reason would be [...]
We extend our best wishes for a happy holiday season and a new year of joy, peace, and prosperity. Our blog will resume January 4th.
