During the past year, district attorneys have sought to stem abuses by contractors who use illegitimate disadvantaged business enterprises (DBEs) on U.S. Dept. of Transportation-funded projects.
EisenhartAs a partnering facilitator on challenging building projects, I can share that effective communication among team members is the best offense in managing risk on any type of project. On a design-build hospital renovation project that I recently facilitated, project challenges related to unknown conditions and owner additions triggered each stakeholder's conventional risk management strategies—such as case building and communicating entirely through emails and letters—all of which led to distrust and further decelerated the project.Fortunately for all involved, the builder’s senior project manager was committed to finding a better way. His approach was to consult with the medical director and
Related Links: White House Rolls Out Private Infrastructure Finance Plans Biden Calls For More Private Investment Despite the uptick in construction, many firms are feeling hamstrung by the hesitancy of traditional banks to provide growth capital. Unfortunately for smaller players in construction, the small business lending process is not working well, with banks often reluctant to lend to smaller firms and offering high-rate and fee-laden business credit cards.Some Small Business Administration loans are available, but they can be cumbersome to obtain, with many banks preferring not to offer SBA loans of less than $350,000. Fortunately, new online SBA options do
About 10 years ago, researchers at the Massachusetts Institute of Technology and the Georgia Institute of Technology set out to form the Construction History Society of America (CHSA), modeled on a similar society in the United Kingdom. Until that time, research and inquiry into the history of the American construction industry had been as fragmented as the industry itself, with each segment pursuing its own field of interest. Now, we are able to pull together the various strands. Next month, the CHSA is hosting the Fifth International Congress on Construction History in Chicago on June 3-7.BOWENIs this just an exercise
Uncertainties related to capital projects in the process industries have increased dramatically over the past three years. Brent crude prices have fallen precipitously to around $65/bbl, while the costs of capital expenditure (capex) projects in the upstream sector are estimated to have increased approximately 10-13% per year. In construction contracting, uncertainty increases cost because estimators must add contingencies to protect their bids from unknown conditions. As the process industry seeks to contain capital costs, many of the causes will be difficult to corral, while the volatility of oil and gas prices makes planning difficult. According to a recent study from
With the turnaround in the economy and a workforce development crisis on every level, an old issue has reached a tipping point. I’m talking about the lack of diversity in the construction industry. DarnellIt is time to start a meaningful dialogue to create some traction toward a resolution. It is time for everyone to dig deeply and focus on this issue and for all sides to commit to a proactive approach. It is time that we meet in the middle and figure out how to use a more diverse workforce to create better projects and better business results. I have
Dodge Data & Analytics The owner informs the design team of a budget contingency about half the time. Related Links: Managing Uncertainty and Expectations in Building Design and Construction I hate secrets, but the owners of building construction projects apparently believe in them.Deep within one of my company's most important recent publications, a SmartMarket Report on uncertainty in building construction, is a fascinating series of findings about whether owners establish contingencies in case their project costs run over budget.Owners, it turns out, often keep the information secret from other members of the project team."Which may explain," say the authors at
Construction in New York City is being left behind in the data revolution. If subcontractors don't shed their resistance to providing data and stop keeping it in separate public-agency silos, we will never advance, and we will never be able to understand our businesses. We can't measure what we don't have and can't see.Further, the current state of industry databases makes it impossible to cross-reference related work histories and other relevant information on payroll records, work experience, and crucial-task and work-area data. Baseline task reporting, with attached area reporting, enables project-managing agencies to track the actual hours needed to frame
Related Links: Probe, Lawsuit Eye Post-Sandy Inspection Reports ASCE: Engineering Investigations of Hurricane Damage Recent news reports involving storm damage investigations performed by engineering firms have raised serious issues regarding professional practices. The firms are accused of colluding with insurance firms and of fraudulently altering reports, leading to lawsuits and criminal probes. These allegations are extremely damaging to the engineering profession and they undermine trust that the public rightfully places in engineers.These cases involve engineering firms that were hired by insurers to inspect properties damaged by Superstorm Sandy. Typically, insurers asked the engineers to distinguish damage caused by wind and
Related Links: Surety Bond Misconceptions A P3 Makeover for the Standard Surety Bond (subscription required) Public-private partnerships (P3s) will back many of the most important projects in the years ahead and some concessionaires have chosen to adopt what is known as the European or Canadian model, which focuses on guarantees in the form of letters of credit and liquidity. Even within the insurance industry, some are trying to make bonds look more like LOCs. This is very troubling.The U.S. infrastructure has always been supported by surety bonds. As a purist, I believe that if we choose to use P3 as
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