The other day I was talking to a retired gentleman who was discussing how a company he had once worked for tried to get greedy on a project and almost lost a long term client. Basically, the construction company started to nickel and dime the client on a GMP project so the billed amount would [...]
Communications on a construction project are crucial in the success of a project. Just like good fences make good neighbors, good communications yields good results. Too many projects start with poor communications at the onset of the project. This is when the plans and specifications do not reliably represent the work to be performed. If [...]
I sound really old but there is a basic bidding knowledge that is missing in today’s construction industry! IT USED TO BE: Contractors relied upon estimators and their bid managers that would not blindly accept the goofy low subcontractor’s bid. They knew there was a problem. Contractors had estimators and bid managers on staff that [...]
Let’s say you were lucky enough to be low bidder and get a job with some profit in it. Okay, pretend this is not a fairy tale. Where does all the profit go when you’re done? You may have started out with 5% profit but you only end up with 1% in the end. It [...]
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 [...]
Here is a top 10 list of reasons that constructions sucks. The reasons that are listed are items that if you are aware of them during the construction process, construction will suck less. Guest Blogger – Todd Weidemann 10. Contractual relationships in construction are unique under law. 9. Different delivery methods drive different motives and [...]
For some reason, some managers believe that always telling the craft labor the project is losing money is a good way to increase the productivity but I don’t see the logic behind this strategy. I believe being honest to the workers in the field is the one and only way to go. Lying does nothing [...]
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 [...]
Over the years I have had to be very honest with some of my clients. I would tell them if the project that they are looking at bidding is a good one for them to go after. I have told them that whoever is awarded this job will need to be careful due to notes [...]
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 [...]
