Sun Tzu famously told us to know our enemies… but what about our frenemies?
Recently I was interviewed by Casey Grey from the Conscious Builder Show. We spoke a lot about RISK. You can click to watch or continue with this quick read.
Many people think of risk as a bad thing, but it can actually inspire us to push ourselves. Risk has two outcomes…
Success or Failure.
“To quote the cool kids… Risk is a Frenemy… It’s both an enemy and a friend, and we need to keep it close and get to know it.”
Construction is a risky business at the moment.
You can tell because WHERE ARE ALL THE PEOPLE?
Where are all the skilled construction workers?
The reality is it’s getting harder to deliver on construction contracts.
Especially on time and on budget.
So how do we mitigate risk and deliver on our contracts?
The first thing is to understand what contracts are the best for you…
Lesson 1 is that Standard Contracts aren’t Actually Standard Contracts- THEY’VE BEEN AMENDED.
Ultimately the best contract protects both sides.
So how does one figure out a good middle ground?
A lot of it comes down to communication and understanding.
Over the past 5-10 years standard contracts are few and far between.
Most contracts you’re given are amended contracts.
The aim is to push risk down the chain.
- Fixed-price contracts work for people who know EXACTLY what they want and are unlikely to deviate from this.
- Cost-plus contracts are safer for those who anticipate that the scope of the project will change along the way.
Ask yourself if you know exactly what you’re going to do. If you do… go with fixed price. If you don’t… go with cost-plus.
The world has changed over the last few years… Now it’s not so much about the lowest price but can I get this thing done?
The most successful construction companies assess their risk all the time.
So make sure that you make Risk your frenemy.
We want you to be the MOST SUCCESSFUL you can possibly be. That’s why we put together content with tips and advice that is tried and tested.
For more contractual advice, Quantum Contract Solutions is here to guide and assist you through everything contract related. Let’s reduce risk in your contracts and save time and money, just click this link to get our FREE case study to show you how clients just like you are doing it.
