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These are the top six reasons construction projects fail. Whether repair, renovation, maintenance, or new builds, 30%-40% waste is the norm due to one or more of the following… #1 Lack owner leadership, capacity, accountability. #2 Failure to adopt, implement, and manage a robust and integrated planning, procurement, and project delivery process. #3 Poor team selection. #4 Insufficiently detailed and/or poorly communicated Scope of Work (SOW). #5 Lack of trust. #6 Failure to leverage the k
When contracting parties agree to a fixed price or lump sum amount for a defined scope of work, the contractor is generally obligated to build that scope of work for that price regardless of what it costs him to do so or what unmentioned obstacles he may face. His price will typically be set to cover overhead costs and a reasonable profit. And time is money; all other things being equal, the sooner the contractor completes the work, the more profit he will make.
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