Construction - The show must go on!
Construction - The show must go on!
Construction - The show must go on!
Contractor, Developer, Lender, Owner….are they ever truly in agreement?
I don’t think so. Rarely in my experience have I encountered a group which are truly in agreement or understand the complexity of the construction about to break ground. That’s not to say they haven’t signed an agreement. It’s sad because they usually have a common goal, but the truth is, they only care about themselves and are just going through the motions. What about collaboration, transparency, teamwork and being honest? Let’s try that for a change. Yeah right.
Each group has their own business, business plan, current cash-flow situation, exit strategy, problems, representatives and urgency to “close the deal”. It’s almost impossible for them to completely be in line but I am still a believer that anything is possible.
If you work and live in this space, I know you can relate. Contractors confirm repeatedly they can perform the scope of work on budget and on time. Developers insist on payment and performance bonds, which might as well be a gun to your head. Lenders don’t have a clue about construction so they hire a consulting group to manage the due diligence process which becomes a vicious circle. Owners then hire an owner’s rep which is the root of all evil.
Maybe I am only speaking from personal experience, but I don’t think so. I have heard war and horror stories from every level and aspect of the construction world and somehow the buildings still go vertical and some groups continue to make a ton of money. It’s not to say the buildings are completed on time or meet the level of quality originally intended by the design team, but once agreements are signed and money exchanges hands, the show must go on.
I sometimes wonder when I look at the skyline and start counting tower cranes, how many attorneys are involved in the background and how much of it ends up in litigation. Litigation, Arbitration, Mediation what they really need is Meditation. I find it hard to believe that so many projects, which start off with such good intentions and often change lives for the better, can end up in such a rotten place.