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

Monday, July 27, 2009

Hindsight Over Condo Sales

"It was believed that the developer could complete a project of this size within two years following the date the units were pre-sold. The truth was that by 2003, there were no condo projects in excess of 100 units that could be substantially completed in two years."

Worth a read. The impact of poor financial practices, construction management gone awry and misguided buyers. The drama and trauma of the "flipper" phenomenon.

Hindsight Over Condo Sales

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Saturday, July 25, 2009

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.