“If you don’t invest in risk management, it doesn’t matter what business you’re in, it’s a risky business,” Goldman Sachs President – Gary Cohn.
Like many other industries, there is a certain level of risk associated with anyone who is involved in commercial construction. However, it is arguable that the Construction Industry generally comes with the most unknowns, which increases risk. Virtually every construction project involves multiple stakeholders working together to build something that has never been built before, using teams of people who may not have ever worked with one another before. As a result, there are often challenges related to budget management, contract management, scheduling and coordination – which ultimately can result in budget overruns, project delay and quite often end in disputes.
The professionals at Construx Solutions have experience in all facets of the construction process in all major industries, and have worked on projects across the globe. As a result, our professionals have deep seeded knowledge in minimizing risk on any project. We have this knowledge, because we have seen it all. As a result, we have the ability to assess risk from all angles and viewpoints.
Our team regularly works with clients in order to minimize exposure to risk by offering the following:
Contract Risk and Compliance Assessment – The first step to minimizing risk in construction is through the construction contract. Our consultants work with clients to help prepare a sound contract strategy that will minimize exposure to risk and will provide protection throughout all facets of the construction process. In addition, we will work clients to help ensure that all parties involved are compliant throughout the contract term.
Cost and Schedule Risk – Budget management and scheduling are the ultimate drivers to the total bottom line cost of a construction project, and thus present a lot of risk if not planned and executed properly. Our team will assess risk of both budget and schedule at any given point in the project lifecycle and will work to minimize any exposure to risk that is found.
Project Controls and Governance – Risk is undoubtedly minimized when a strong set of project controls and a sound governance model exists on your project. In addition, both of these items are necessary on both sides of the contract for a project to ultimately be successful. Whether you’re an owner or a contractor, Construx Solutions will work with your team to ensure that the proper controls are in place to manage your project.
Contingency Planning – A sound contingency plan involves the ability to assess risk and associate it with budgeting. Construx Solutions does not have the ability to predict the future, but we do have the ability to point out areas of heightened risk, and translate that into potential cost.
Resource Planning – Proper resource planning is imperative towards achieving project completion on time and within budget, and without confidence in a resource plan there shouldn’t be any confidence in achieving a budget. Construx Solutions can help prepare a resource plan that is accurate, achievable and realistic in order to ensure that there aren’t too many surprises as it relates to cost at the end of your project.
Dispute Avoidance – Disputes are common in the construction industry and ultimately result from poor communication or misinformation throughout the construction process. Our team understands how disputes arise and ultimately the information that is required to settle them – therefore, we are very capable in assisting our clients in avoiding disputes altogether.
Fraud Detection – Unfortunately Fraud exists in the construction industry, in particular on large scale construction programs. It exists because there are so many people involved in a given project and because large amounts of money are constantly exchanging hands between the entities involved. The Construx team has a considerable amount of experience in detecting fraud and also will help to ensure it doesn’t occur on your project.
Risk Mitigation – Obviously certain impacts aren’t foreseeable and can have a negative impact on any construction project, these are the risks we take in construction. When risk is heightened due to impacts that occur on the project, Construx Solutions can help you mitigate the result to keep the project moving forward and will assist in keeping your project on time and within budget.
Call Construx Solutions today at 404.329.3000 if you would like more information on our Risk Advisory Services.