Is this a construction industy issue or a developer/owner issue? Does the construction industry look to pass on risk, as Mr. LePartner states or do they assume “enormous risks in building the wonderful projects that they do”, which he states seconds later? I would be interested in hearing him explain why the construction industry would or should be willing to assume more risk when given profit margins are so small (2%-4% annually, as he states), owners many times wish to proceed on a “fast track schedule” and bid periods are typically too short to forsee all existing conditions?
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Is this a construction industy issue or a developer/owner issue? Does the construction industry look to pass on risk, as Mr. LePartner states or do they assume “enormous risks in building the wonderful projects that they do”, which he states seconds later? I would be interested in hearing him explain why the construction industry would or should be willing to assume more risk when given profit margins are so small (2%-4% annually, as he states), owners many times wish to proceed on a “fast track schedule” and bid periods are typically too short to forsee all existing conditions?