In years past, one of the greatest ways to minimize risk during a construction project was to avoid it entirely. Project managers would shift the various responsibilities to other individuals who were more qualified and able to handle risk if it should occur. Before the economy took its toll on the construction business, this setup was the best way to handle projects. After all, there was no reason to take on the responsibility when the money was there to pay more qualified professionals.
However, the construction industry is slowly rebuilding and money is no longer a luxury. We are learning to do more with less funds, and one of the ways to do this is by learning how to manage risk. Shifting the responsibility to others – who would then move it along to others – is no longer the standard. This becomes expensive and can actually hurt a construction firm.
Therefore, we can expect to see new contractors emerge in the near future. They are taking the initiative to gain a deeper understanding for the sources of risk in their field and how to best manage them. When taking this part of a project into your own hands, you can save money and be better prepared to handle risk. But there’s more to today’s contractors than just knowing how to understand, prepare and react to potential risks. Contractors are not just the people in charge of the project; they are the true leaders of the project.
You will see that post-2007 contractors will be more involved in their projects, ensuring that they stay on budget, utilize green building practices and adhere to the proposed timeframe. It’s a competitive industry right now, and only the best will succeed. Self-performing contractors are the most profitable, and more are driving themselves to be this type of leader. When they use their own labor, they can also save money and provide a better margin of profit.
While the construction industry is certainly different than what we’ve known it to be, there’s no reason to fear the new changes. They should be embraced, and those who take on this newfound change in a positive way will be most successful.
Blog sponsored by: Construction Reports