The Secret of Delivering Successful Construction Projects

With so many design and construction companies out to turn a quick profit in construction, there are as many horror stories as successes. These stories cause serious apprehension, concern, and even a sense of mistrust between owners/developers and construction professionals before the project ever begins.

The following are a few keys to avoiding common pitfalls in developing a new project.

UNDERSTAND HOW TO DISTRIBUTE THE RISK. All investments have an inherent risk. The key is to understand how this risk should be distributed. An owner can distribute all risk with a construction project to others; but, this will result in a cost or time premium and/or a sacrifice to quality. These factors must be carefully considered when soliciting proposals and executing contracts. SET

REALISTIC EXPECTATIONS. This applies to both cost and schedule. An unrealistic budget estimate can kill a project before it is even conceived, or cripple the project throughout its life. A crippled project will often result in claims following completion. An unrealistic schedule will either allow a contractor to go to sleep at the wheel or set him up for failure right from the beginning.

COMMUNICATE. Open, honest communication will build trust and understanding thus fostering a team approach to problem solving. If an owner feels like he has been included in the problem solving, he is much more understanding when a claim is submitted.

ACCOUNTABILITY. All team members must understand that they are accountable for contract agreements. This accountability must be handled professionally and consistently.

COMPETITION. Along the same lines as accountability, competition will insure that each project receives the best team at the best cost.

After successful construction projects, owners are much more excited to make the investment again. Design and construction professionals that understand these keys will be the first to be invited to propose on the next project.

Selecting the Best Project Delivery Method

Each project is unique; so, it is essential that the Owner select the proper delivery method based on the priorities of the specific project. Possible delivery methods include: traditional Design-Bid-Build, Multi-Phased Bid Packages, Design-Build, Multiple Prime Contracts. Each methodology has advantages and disadvantages. PCI has experience with each option and will be able to help the Owner select the right one for the project.