The foundation of every good project rests in two important activities:
- The estimate – Far too often, estimating serves solely as a pricing exercise to win work. Although estimating is a necessary requisite to pricing work, estimating should be viewed as a critical discipline in allocating financial resources to the project team. Whether performing the take off, sourcing materials, projecting equipment needs, defining the staffing requirements, or deciding what scopes to outsource, estimators set up the project for success, and not just financially. When project managers have sufficient funds budgets, they can deliver a quality project without fear of tapping the bosses wallet.
- The contract – Many, many, many contractors short-cut this all important activity of project review and negotiation. Yet, after twenty five years in the industry, the most profitably and successful contractors, take contract review very seriously. Whether using internal or external review, the most successful contractors are disciplined in redlining the initial draft, then negotiating these deal points.
Construction projects are often long and arduous. Well executed projects can showcase the fine craftsman behind your company’s logo. In contrast, poorly executed projects can be riddled with mishaps, poor quality, unnecessary delays, disputes and, often, financial disappointment. Those contractors disciplined in laying a firm foundation in the estimate and contract radically improve their chances of being richly rewarded for all their hard work.
At Danisher Consulting, we’ll come along side you to develop these financial disciplines, partnering with your staff and legal advisors to set all of your projects up for success.
