Hackitt's comments on procurement are one of many recommendations which are part of an integrated systemic changes.
This is not a case anyone would want to emulate. This is a case to be regarded as the perfect storm of what NOT to do in construction.
Change Orders - How to Plan, Mitigate, and Minimize the impact of Changes on Your Construction Projects.
This week in the news we find an article from Passenger Terminal Today.com about a request for proposal for a new terminal at Newark International Airport. The story tells us that three joint-venture (JV) firms have been shortlisted for a design-build agreement to build a new Terminal at Newark Airport. The three JV firms feature … Continue reading Procurement Strategies for Construction.
Over the last few years, I have noticed an increase in the number of construction contracts using "open book" provisions. The term "open book" describes a contract provision that allows Owners full transparency into the General Contractor's sub-contracts. It should be noted that "open book" provision are not the same as audit rights. Audit rights … Continue reading Best Practices: Open Book Bidding
As part of a multi-part series on the most common types of permits, this entry addresses the 6 considerations of zoning applications. Click here to read the first part where I explain these 6 considerations in detail. This week's news story is right out of my back yard here in Bucks County Pennsylvania where we … Continue reading When do You Need a Permit? (Part 2) Zoning Application
Many property Owners and construction professionals have the misconception that the only way to solicit pricing for design and construction services is to request a fixed price lump sum quote. There certainly are occasions when fixed price lump sum quotes are a good choice, but this should not be taken for granted. In order to … Continue reading Pricing models what are they and when are they used?
In an article posted on December 4, 2016 the Bangkok Post announced that the First Batch of air-conditioned NGV buses have arrived. The article reports that these buses will be delivered by December 29 following a procurement cycle that took FOURTEEN (14) years! That's right! The next time you complain about the time it takes … Continue reading How Much Time Should Procurement Take?
In an article published on Friday November 18, 2016, Morning Star reports Blacklisting Firms Still Given Public-Sector Contracts. This is a story that goes back to 2009 when the now defunct "Consulting Association" (a trade organization operating in the UK) was raided by the British government uncovering a list of 3000 blacklisted construction workers. Workers … Continue reading Blacklisting
Allowing a vendor to add mark-up on top of the costs of his own resources leads to a double dip by the vendor.
The articles goes on to correlate corruption practices in dozens of European Countries with single source procurement.
It's common to behave evasively or defensively when we make mistakes, but in order to retain trust, we have to avoid reverting to this basic instinct.