Today’s procurement tip is on the dangerous practice of transferring risk. The idea that a buyer can transfer risk to a vendor has become very popular. Buyers love the idea that, no matter what, their project will be completed with...
Finding a high performing vendor for a project is the best thing a client can do to ensure their expectations are met with the fewest issues. Unfortunately, the number of expert vendors who have the ability to deliver high performing...
The Best Value Approach (BVA) is a new supply chain management approach that assists organizations in the delivery of services from procurement to closeout. It was developed by Dr. Dean Kashiwagi in 1991 at Arizona ...
Skanska has requested an extra $50 million [more than an 11% increase on a $430 million project] and an additional 245 days on its Pensacola Bay Bridge due to damage caused by Hurricane Sally in 2020. The damage to the...
According to Construction Dive article, a Miami developer is suing John Moriarty & Associates for failure to complete construction of a 22-story luxury tower apartment and retail building on time....
Some buyers have resorted to hiring consultants instead. This has its own problems—you still run into the same issue of how you hire an expert consultant in a field you know nothing about. Consultants only...
There are many methods proposed to write effective contracts. The approach is usually based on finding the perfect balance of pricing, incentives, distribution of risk and setting quality control measures. As contracting strategies have changed.....
In an effort to combat poor performance an approach to contracting has been used labeled public private partnerships (P3). One of the main issues cited with P3 projects is the process of transferring risk, which contractors feel is disproportionate to...
The article analyzes the finding of a Mail Manager research with architecture, engineering, and construction (AEC) firms in the US and UK. Based on the research results it was identified that: 63% of respondents reported having some form ...
It is important to realize that not all vendors are enthusiastic about collecting and posting performance metrics. Logic tells you that posting performance metrics will create transparency and will clearly identify how well a vendor performs....