Failure of Construction firms
Failure of Construction firms
(OP)
Why is the construction industry such a low profit industry with a high risk how can the situation be improved
INTELLIGENT WORK FORUMS
FOR ENGINEERING PROFESSIONALS Come Join Us!Are you an
Engineering professional? Join Eng-Tips Forums!
*Eng-Tips's functionality depends on members receiving e-mail. By joining you are opting in to receive e-mail. Posting GuidelinesJobs |
Failure of Construction firms
|
RE: Failure of Construction firms
So much time is wasted bickering over the lowest bidder, that very little time is spent actually selecting a company on the merits of its performance and safety rating.
I propose that there are plenty of jobs out there, that when the bid process is thrown out and the job is awarded to the most comprehensive qualifications package, you would find higher rates of return on investment with lower risk during construction and design.
A good example of this mentality is the current trend toward design-build projects. Large projects are being farmed out to companies that can take the guesswork out of the management function. You award the entire project to a reputable firm (I am partial to my own), and allow ample time and cost controls, and return to find exactly what you were looking for completed.
All in all, you can lower your risk by choosing or becoming a contractor rooted in the quality of your work, not the way in which you won the lowest bids by cutting corners....
Value added workmanship is the cornerstone of this philosophy.
RE: Failure of Construction firms