Document Your Estimate

Not only does good documentation need to done on the project but also during the estimating process.  I don’t know how many times I have been asked questions about a project that I had estimated sometimes up to several years before.  Without good documentation, it would be impossible to track down the answer. It reminds [...]

Let’s Talk Communications

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 [...]

IT USED TO BE

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 [...]

Where Did Those Profit Margins Go?

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 [...]

Optimistic Construction Companies

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 [...]

The Competitive Advantage Nobody Needs – Round III

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. [...]

The Competitive Advantage Nobody Needs – Round II

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 [...]

Who And What Is BIM For?

If I were an owner I would love Building Information Modeling (BIM). I love looking at the nice 3D modeling, watching a fly-though on the computer screen.  BIM is great being baffled with the brilliance that is pretty pictures.  I would like to get a feel for how my project is going to look I [...]

What Do The Most Successful Projects Have?

I recently attended a breakfast educational meeting.  It involved a panel discussion on construction. The panel members were an architect, contractor, subcontractor and an attorney.  It focused on project delivery methods and some of the problems associated with the various types.  The one common thread, for all of the problems discussed, was the lack of [...]

The Competitive Advantage Nobody Needs

I recently overheard a contractor bragging to others on how they could have a cost advantage over their competition.  This caught my attention.  So I listened. It seems in their bidding practices they priced materials/equipment items that were not approved in the specifications.  They would not request these items to be approved in the bidding [...]

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