The Surety

The Surety

  The Surety Construction’s “Sports Book”   Sureties operate the “sports book” for the construction industry. They handicap risk by setting rates and issuing bonds. They “book” the contractor’s bet that he will complete a project as contracted. They “set…

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Risk Minimization

Risk Minimization

Risk Minimization (Part 2)   In last week’s blog, Construction’s No-Win, research data led us to the conclusion that risk cannot be effectively transferred in contract negotiations and that only highly competent contractors can manage risk for all stakeholders. “Risk…

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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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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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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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