Many firms have decided to limit their growth, bidding only on select projects or simply relying primarily on negotiated work. And some firms are abandoning market sectors where open and unbridled bidding is the rule. We also believe that owners should take a long, hard look at the way they bid out projects. Too often, owners will simply cast out a net for contractors and take the low bid, regardless from where it comes. Owners, particularly in the public sector, have to understand that what they lose in added cost from qualifications-based bid selections, they gain in the quality of the end product.
Construction is looked upon as the bluest of blue collar trades.
But that doesn't mean a construction firm can't be run in a fiscally sound, professional manner. The more firms that adopt professional financial and management practices, the more the pressure on margins will be eased. It was the May 1 cover story and special report about poor design drawings. As far as we can see, these documents are a laudable effort to represent the view of owners in correcting the perceived imbalances in the American Institute of Architect's model design agreement. As expected, the document dramatically expands both the responsibility and liability of designers.