English | 2023 | Original PDF | 5 MB | 307 Pages
Edward W. Merrow, 1119902096, 9781119902096, 9781119902102, 9781119902119, 978-1119902096, 978-1119902102, 978-1119902119, B0BNCJYZZ8
Major Projects are Delayed by Months or
Years, and Cost Millions More Than Budgeted, Because of Common
Mistakes Made at the Contracting Stage
Organizations that invest
huge amounts of capital in major building/industrial projects almost
never do the engineering and building themselves. They hire engineering
and construction contractors to do it for them. Unfortunately,
selecting contractors and negotiating the terms of a major project is
one of the most difficult aspects of project management...and
organizations waste billions of dollars and "bake in" months or years
of delay by doing it wrong. Contracting is also the area of project
management that is most prone to firmly held opinions unencumbered by
any facts. We intend to remedy that situation with this book. Drawing
on a properietary detailed database of over 1100 major projects, the
world's leading industrial engineering project consultant, Ed Merrow
explains:
Key Principles of Contracting for Major Projects:
- Owners are from Mars; contractors are from Venus
- All the biggest risks in contracting belong to the owner
- Contracting “games” will normally be won by contractors, not owners
- Most risk transfer from owners to contractors is an illusion
- Contractors do good projects well and bad projects poorly
- Contractors may have shareholders, but they are not your shareholders!
- Mixing different contract types with different contractors on the same project is unwise
- Economize on the need for trust; trust only when being trustworthy has value
Merrow also explains:
- Which contract incentives work and which don’t and WHY
- Which of over a dozen contracting strategies work best and which ones hardly ever work and WHY
The
strategic advice in this book is designed for owners and contractor
project managers, team members and supply chain, executives, and other
business leaders involved in major projects. It's also an indispensable
resource for engineers, leaders of industrial firms, bankers, and
academics studying the messy realities of the construction and
engineering industries.
