Construction Advisory Group is committed to contributing to the industry by conducting a blog-conversation on monitoring projects and navigating the construction world.

Friday, July 24, 2009

Maximizing owner margins

The ever-rising cost of completing construction projects is making it common place to see the low bid contractor selected for projects which they cannot possible complete.

This may be a dangerous trend.

Too often, owners who believe that even if contractors cannot complete the work, then insurance companies must make good on the final product. This puts insurance companies at a huge disadvantage because it is often too late to salvage a project, both financially and logistically, by the time a less-than-qualified contractor has been declared in default.

Oversight and periodic reviews of contractor performance help provide "insurance" for the insurance companies.

1 comment:

  1. I was happy when I reading your blog. Its gives me an idea regarding those irresponsible contractors. I hope you add more for your new blogs because its really a big help for a person like me who don't have an idea regarding constructions.