There are only three things in life you can guarantee: Death, taxes, and change on a construction project.
Yet, changes on a construction project are responsible for the biggest schemes and thievery in probably just about any industry.
Contractors underbid projects to get hired. After they’re accepted, they have to make up for those costs.
And one major way this is done is through change orders, that can delay your project for months or years, incur millions of dollars in unexpected costs, and cause chaos and undue stress.
This is very common, and more examples of this can be found daily. Having been in this industry for over 30 years, I’ve seen it happen again and again.
The system is broken, and contractors take advantage of it to line their pockets. You as the owner have little control over your project.
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DON’T GET SCREWED
If you try to dispute a contractor’s claims should they be unreasonable, this only delays things further, and the battle you’d go through isn’t worth the money and time you’d invest into it.
For decades, it’s been a lose-lose for owners.
I flew all over the world to solve this, and came up with a solution that can be used to force contractor accountability. We developed the Risk-Free Construction Solution™.
It’s a 6 step process that strips the contractor of their power, gives the designers what they need to do their jobs properly, and optimizes the sequencing of construction so that you can complete the project on time and on budget.
Phase 1: Viability Assessment™
The first phase of the process is the Viability Assessment.
Here, we assemble a qualified team of architects, engineers, building experts, and financial professionals to assess project viability.
This is about understanding who the owner is, what the expectations are, and what the financial resources look like.
This way, we can see if the project actually has a good chance of success. We’ll know what we’re working with, rather than going in blind.
We start off the process by making sure the project makes sense and that the resources can be assembled to ensure success.
Phase 2: Predictability Approach™
If, when the actual project is being built, it is the first time you’re seeing what it could look like, you’re going to end up disappointed.
In this phase, the design standards for the project are established.
Your project is built five or six different times in a virtual lab to optimize the sequencing.
This way, if a change order is needed, we can see it ahead of time. You won’t just run into a huge delay.
It’s a lot cheaper to make these changes on paper. The Predictability Approach™ provides a framework that the contractor is accountable to.
He can’t make it up as he goes, and charge you when he feels like it.
The costs, schedule, sequencing, and procurement timeline for materials are all planned out in advance.
This virtual model will dramatically improve the way the construction is done, and ensures the contractor can’t play his make-it-up-as-he-goes games.
This phase maximizes the control you have over the project.
Phase 3: Tender Analysis / Contractor Selection
Choosing a contractor solely on price is like buying a Rolex on a Manhattan street corner. Anybody can give you a cheap quote. The key is accuracy and realism.
Through technology, we create transparency with the contractors’ bids. Instead of just accepting the lowest one, which will often(always) cost you more money in the long run, you get to make an informed decision.
Their track records are assessed. We look at each tender to examine the loopholes and potential gaps and risks.
Without a tender analysis, you may as well be playing “eenie-meenie-miney-moe”, and it will usually cost you.
We compare bids with accuracy, letting you make an informed decision. The lowest bid is often poisonous.
Phase 4: Green Light Effect
Hit the ground running with “the end in mind.”
Now that plans are in place, Phase 4 is about hitting the ground running.
Once construction starts, we set up a virtual twin that models the progress of the project being built.
This is what we can compare to the model developed during step 2.
This way, we can see change orders coming from a mile away, and the cost and magnitude of change will be dramatically reduced, saving costs and eliminating delays.
Phase 5: Sequencing Advantage™
During this phase, a control center is established that provides the contractor with the sequencing information developed in the Predictability Approach.
It also gives all stakeholders the ability to monitor the progress of work on a daily basis. They will actually know what’s going on.
Most contractors control the flow of information, as they typically provide and control the project management platform.
Owners and design teams both suffer at the whims of the contractors, as the quality and format of information provided are typically subpar.
Checks and balances are severely compromised, while the design team is always playing catch-up.
With the quality management platform we use during this phase, the contractor is required to provide the submittal schedule – something they normally never provide which lets them play their games.
With this, the contractor is submitting the appropriate information at the appropriate time and in the appropriate form for an assessment of the quality of the information.
The Sequencing Advantage™ makes sure everyone knows exactly what’s going on, and prevents the contractor from playing their games.
Phase 6: Stakeholder Scorecard™
Guarantee success and integrity of future projects by having a team ready to go when you need it.
The general contractor and its subcontractors are assessed and warehoused for future projects in order to improve the performance on your next project, just like Uber®.
In the current system, you have no idea how the contractor and their subs will perform. You don’t know the quality of work.
In this phase, we assess the GC and its subs to understand their performance.
Over time, you will be in a stronger position to select a contractor and its subs for your next project.
Then, you’ll never have to worry about taking it to the chin from a contractor again.
Which is not something most owners can say.
Take Back What’s Yours
Construction is risky for owners, who often have no idea of the games contractors will play to rake them over the coals.
Most have accepted that projects will take 20% longer to complete and cost 20% more – something I call 20/20 vision, but frankly, this is ludicrous.
You’d never accept that with anything else you buy.
The Risk Free Construction Solution™ keeps the owner in a position of power, ensures contractors are held accountable, and dramatically improves the likelihood of the project being completed on time and within budget.
If you have a project coming up and want to ensure you’re not hit with massive change orders, exorbitant sums, or delays, give the Risk Free Construction Solution™ a try.
You’ll be completely protected and have control over your project(like how it should be).
To get started, send me an email with the subject line – Risk Free Construction Solution.
steve@whitehornfinancial.com
Thanks for reading.
