Category Archives: Construction Economics

PLG ESTIMATING & PURCHASING > Buyouts on Large Vendor Contracts > 1

Construction estimating and purchasing executives are aware of the various issues involved with negotiating large equipment purchases.  On fixed price contracts, the ability to negotiate purchases on major equipment contracts affects profitability, schedule, project risk and overall project success.  The … Continue reading

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The Role of The Owners Rep. Expands

http://newyork.construction.com/opinions/2011/0725-AsStaffsShrinktheRoleOftheOwnersRepGrows.asp With the Poor economy forcing owners to make tough decisions about layoffs and budget cuts, one position they should not consider eliminating is the owner’s representative. That is because this job has become a vital tool in helping the … Continue reading

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Supply Chain Integration

There seems to be a critical change occurring in the construction industry supply chain.  Owners, developers, contractors and government agencies are demanding a tighter integration of procurement, coordination, delivery and cost management activities.  The industry is completely reinventing itself with … Continue reading

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LDs vs. Incentives on Projects

I have a nagging question which I cannot answer.  Why do some Owners (including Government institutions) insist on including LDs (liquidated damages) in contracts?  Based on my experience and on informal surveys I have taken, LDs, in general, DO NOT … Continue reading

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Construction Consulting > My View

Over the past ten years, I have gained much insight into the construction consulting industry.   I’ve learned that big, blue chip clients have become increasingly dissatisfied with the level of service being provided by large advisory firms.   The major causes of that dissatisfaction … Continue reading

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Ending the Politics Of Infrastructure…by Benjamin Cheatham

The country’s vast network of highways, airports and seaports historically has been a primary source of competitive advantage, but today our vital infrastructure is like a 1976 Chevy—physically and financially outdated. While other countries are exploring new approaches, America’s infrastructure … Continue reading

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Sustainability

Sustainability is more than just delivering efficient buildings and infrastructure.   It is a mindset and a commitment to develop projects that minimize the impact on our environment.  A large part of this relates to a systemic approach to building … Continue reading

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The Importance of Gate Reviews in Design and Pre-Construction

Gate reviews are essential to well-managed planning and pre-construction phases of a construction project.  The concept is simple in its execution and elegant in its simplicity.  I caution industry professionals that simplicity does not mean that they should let their … Continue reading

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Common Problems on Large and Complex Projects

  Common Problems on Large and Complex Projects 1.         Difficult and belligerent subcontractors. 2.         Poorly structured subcontracts and loosely defined scopes of work. 3.         Protracted punch list activities, especially those related to the technical interfaces. 4.         Weak subcontractor field project … Continue reading

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The Potential Impact of Changes on Projects

Changes affect much more than cost and schedule. Here is a short list of project areas that can be affected by changes – –                Cost –                Schedule –                Quality –                Performance –                Scope –                Risk –                Commissioning –                Marketing –                … Continue reading

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