Risky Business

stressed manIf projects, especially large-scale projects, are your business, you know that there is a certain amount of risk involved in getting to the finish line. So many things can go wrong! The wrong specs or plans can be inadvertently approved; the budget can be revised by a person without authorization; an outdated version of a file can be followed; work can be done without the proper permits; communication can break down among team members; cost increases can sneak up; certain people can be left out of hearing new, critical information; due dates might pass without notice; and unavoidable delays might cause changes that wreak havoc unless they are monitored and compensated for correctly.

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“Oops! I Didn’t Know!!”

collaboration teamHas this happened to you? Someone in a group meeting throws out an idea. You muse about it for the rest of the day, then do some work to make that idea happen. And then you find out that two other people are also working on it, each independently and unaware of your work. Or, perhaps worse, you find out that the other two people had a chat after the meeting and are collaborating on the work, duplicating or contradicting the work that you just spent hours on.

In any group endeavor, communication is key and collaboration just makes sense. This is particularly true in the construction industry. On a construction project, there are many decisions that need to be made, much work to be done, and often, changes to the work along the way. Everyone involved needs to know what is going on, what work is needed now, and who is responsible for it.

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Keep an Eye on that Budget!

bfaHaving an accurate budget for a construction project is a tricky business. During the early, estimating stage, a company wants to give an accurate representation of how much a project will cost, while adding some padding for the inevitable contingencies. Bid too high and you don’t get the job; bid too low and the project will surely go over budget very quickly, and you will gain a reputation of not being very good. Experienced contractors know how to come up with a good initial budget. Keeping an eye on that budget then becomes crucial during the life of the project.

Why do projects go over budget? There may be several reasons, but let’s focus on some of the most common.

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