Another Low-Bid Loophole

Another Low-Bid Loophole

Another Low-Bid Loophole by Jake Smithwick, Assistant Professor, University of North Carolina at Charlotte Within the construction industry, the heavy/civil sector consists of site development and infrastructure projects, such as those related to earthwork, bridges, railways, highways, and aviation. In…

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Too Much Of A Good Thing

Too Much of a Good Thing

Too Much of a Good Thing Our construction industry is enjoying a robust rebound since the depths of the Great Recession, (2009-2012). Residential, commercial, industrial, public and private sectors are all participating, and the future looks pretty good. When the…

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Pre-Contract Planning

Pre-Contract Planning

Pre-Contract Planning Detailed project planning prior to contract award is not as common in construction as you might think. Research reveals that traditional procurement processes typically select a contractor and move directly into contract award without any formal project planning.…

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Risk Encounter

Risk Encounter

Risk Encounter  The Simplar Institute Project risk in construction is defined in basic terms as unplanned cost or schedule changes that crop up during a construction project. Unplanned cost and schedule changes are ubiquitous in construction and have led to a universally negative perception…

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Best Value

Best Value

Best Value Construction’s Six Sigma By Simplar Institute In the 1980s, 37% of all construction projects reported major defects. 37%!!! No manufacturing company would survive a 37% defect rate. By the 1990s, the construction industry suffered 33% of construction projects…

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The Flash Report

The Flash Report

The Flash Report  Last week I highlighted the critical day-to-day usefulness of liquidity ratios in alerting a CEO that he might be flirting with financial difficulty. Today I would like to back up and take a look at the bigger picture - the CFO’s critical…

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Liquidity

Liquidity

Liquidity If I learned anything from ten years operating the world’s largest workout firm for sureties engaged in construction bonding, it’s that liquidity (or the lack thereof) is the most important predictive metric on a construction company’s balance sheet. Economic…

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Let’s Get Real

Let’s Get Real

“Let’s Get Real” In a recent article I wrote the following: “There is a downside to the great market we are enjoying because some construction enterprises will grow too fast and the rate of growth can be lethal. Most construction…

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Common Sense

Common Sense

COMMON SENSE by Brian Lines, Ph.D., Assistant Professor, University of Kansas Construction industry research usually begins with an everyday practical problem brought to a university faculty by construction industry professionals.  Unfortunately, the resulting published research papers can often sound “academic”,…

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O Captain My Captain

O Captain My Captain

O Captain My Captain Cruise Ship The Captain/Master of a large ocean liner does not steer the ship; that’s the Helmsman. He doesn’t navigate; that’s the First Officer. He doesn’t manage the deck staff; that’s the Bosun, or Boatswain. He…

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