The Importance of Identifying Risk During Pre-Construction
Jerry Aliberti • April 5, 2024
In this video we're delving deep into a critical aspect of construction management: identifying risks before the hammer hits the nail.
Why Identify Risks Before Construction Starts?
Picture this: You're geared up, ready to roll with your construction project, only to hit a snag that sends everything spiraling into chaos. Sound familiar? Identifying risks before construction commences isn't just a suggestion; it's a golden rule. By spotting potential pitfalls early on, you're not just saving time and money but also sparing yourself from a truckload of headaches down the road. Trust me, we're all here to make money, not scramble to fix avoidable issues.
Risk Factors to Determine Before Bid Submission:
Let's get down to brass tacks. Before even thinking about submitting a bid, you need to have your risk radar finely tuned. While I could rattle off a laundry list of potential risks, it's crucial to tailor your risk assessment to your specific niche. Weather, pre-bid RFIs, material inflation, and scarcity are just a few factors that can make or break your project. And let's not forget the dreaded budget busters: scope creep, change orders, and rework. Each of these can chip away at your profits faster than you can say "construction delay."
Understanding Your Environment:
Construction isn't just about bricks and mortar; it's about understanding the lay of the land—literally. Logistics, site location, means of egress—these are the unsung heroes of successful project management. Limited access to resources? Tight work hours? Factor them into your bid or risk sinking your ship before it even leaves the harbor.
Know Thy Client:
In the construction game, knowledge truly is power. Understanding who you're working for—be it decision-makers or notorious penny-pinchers—can mean the difference between a smooth-sailing project and a Titanic-sized disaster. Don't be afraid to prioritize clients based on reputation and reliability.
Project Kickoff: Your Secret Weapon:
Ah, the project kickoff—the unsung hero of construction success. Don't make the rookie mistake of tossing your estimate over the fence and hoping for the best. Your estimators and project managers need to be joined at the hip, armed with a thorough understanding of project assumptions and potential risks. Remember, a well-informed project manager is a project's best friend.
Check out our Pre-Construction
and Strategy Development
Pages to learn more about the Pro-Accel approach to helping contractors navigate these challenges.
Construction isn't just about laying bricks and cashing checks; it's about foresight, strategy, and meticulous planning. By identifying risks early on and fostering clear communication throughout the project lifecycle, you're not just setting yourself up for success but ensuring a smooth ride from blueprint to ribbon-cutting. Until next time, keep building, keep innovating, and above all, keep identifying those risks. Hit that subscribe button, drop a comment, and let's continue this conversation. Together, we'll build a brighter, risk-smart future in construction.
The Challenge One of the most overlooked problems in construction is confusion over who is actually in charge of the project. In smaller companies and on smaller projects, it often falls on the superintendent. They have the field experience, are respected by the crews, and drive the work forward, while the project manager plays a more supporting role. That structure works when the projects are small, but as the company grows and the projects become larger, the cracks start to show. Clients expect the project manager to lead. They want answers on budgets, schedules, and commitments. The word “manager” in the title makes them assume that the person has the authority, and in my years of experience, they should. Meanwhile, the superintendent’s value is in driving the day-to-day in the field and keeping production moving. When the lines between the two are not redefined as a company grows, tension builds. Superintendents who have always “run the job” struggle to let go. Project managers who have always supported now need to step into leadership. The lack of clarity creates a tug of war inside the company.
Welcome to the first edition of The Growth Accelerator. This newsletter is designed for construction owners who are serious about scaling their operations without compromising profit or control. After 22-plus years in the industry, managing hundreds of millions of dollars in projects in the field and leading estimating teams responsible for more than $12 billion in projects, I have seen the patterns that make or break contractors. Each week, I will share insights from the field and boardroom to help you run a stronger, more profitable business. So let’s dive into the first issue topic! I figured I would start with the topic of one of my most viewed LinkedIn posts, which received over 225,000 impressions!
Struggling with large-scale construction budgeting? I can help contractors and developers plan, manage, and optimize budgets for complex projects. Read on...
