PR Construction Inc.’s Post

⁉️HOT TOPIC With the squeeze on #margins continuing due to the cost of #construction, #labour shortages, #inflation and other ongoing such as the cost of materials there is an increase in delay and damages claims. POINTS 👈 1. Be aware of the site and conditions and develop a comprehensive scope of work to avoid uncertainty; 2. Be across the construction programme and factor current economic conditions; 3. Know and understand the contract - be aware of #EOT clauses and time bars and comply, comply, comply; 4. Review #Liquidateddamages clauses and the financial implications, are they capped, have you complied with notice provisions; 5. Are you paid or owed money - if not proceed via Security of Payments - usually a quick and cost effective way to get paid and potentially avoid offsetting claims. 6. Seek to have commercial discussions and avoid any potential disputes; 7. Seek legal advice!! #buildingandconstruction #infrastructure #contractmanagement #damages #specialist #delayanalysis #security #payments #extension #developers #builder #engineers #design

Construction News Estimating and bidding can be very intricate processes, but in the construction industry they are routinely necessary to do business. To discover how to move beyond 'free bidding' and elevate your construction business go to https://ow.ly/Xs8C50QK0bi. #construction #estimating #bidding #businesstips #contractor #building #builder #build #constructionindustry #generalcontractor #nationalconstructionrentals #ncr #rentafence #nationalrentafence #nraf

Just came across an amazing project in the Wisdom and Wise River Ranger District of the Beaverhead-Deerlodge National Forest, Montana! 🌲 This job involves providing fencing materials to the federal government - a straightforward materials job with a huge profit margin. Here’s why it’s exciting: -The federal government has specified all the materials needed in a spreadsheet. Just fill in your numbers! -Estimated costs using subcontractors are $772,400, while the awarded contract was $1,785,000. That’s a potential $28,000 profit! 💸 -This is a fantastic opportunity for those in the freight industry or with logistics capabilities. -The federal government allocates $270 billion annually for maintaining nearly 1 million buildings across 500 agencies. With only 25,000 registered federal contractors, there’s a massive gap and numerous contracts going unbid! At GC Experts, we aim to increase the number of skilled federal contractors and bridge the gap between local construction and national federal contracts. If you’re ready to tap into this billion-dollar-a-day market, head over to GCexperts.com and get started today. Don’t miss out on this lucrative opportunity! Visit our site for more details and testimonials from our successful clients. https://lnkd.in/eNNvGM3s

There is a real need for consultation and professional advice when it comes to asessing construction risk. And it’s important to take the time to have that conversation… Construction companies are seeing an increase in their insurance premiums in 2024, which unfortunately directly coincides with rising building material prices, labor costs and inflation. HUB’s Craig Tappel explains the main factors driving the rise in premiums as well as how they will impact commercial contractors in this Construction News and Review article: https://ow.ly/WYrU50QxyiA #InsurancePremiums #Construction #ConstructionInsurance

Who shoulders the risk in construction? As the federal government's #NationalConstructionIndustryForum kicks off (due to David Pocock's agreement last year with the federal government) arguments about ensuring cashflow for builders and ringfencing payments for subcontractors come to the fore again. Australian Constructors Association (ACA) is getting in quick with arguments that the industry is no worse at paying bills than other sectors of the economy. Industry veteran #JohnMurray, whose 2017 report made a set of recommendations around security of payment for subcontractors, says it is worse. And says he proposed a simpler system than the Queensland-based model the ACA is railing against. #securityofpayment #construction #risk #subcontractors https://lnkd.in/gZQuT2bP

Many companies have deployed #accountspayable digitisation and automation solutions to better track supplier invoices, reduce processing times and pay on time small and large suppliers…time to review your AP process? #automation #accountspayable #constructionindustry #payment #australianconstruction

The construction industry has been the hardest hit by insolvencies in the year leading up to April 2024, with 4,401 construction companies in England and Wales going insolvent. This figure surpasses other industries like wholesale, retail, and accommodation. Key factors contributing to this rise include tight funding conditions, high interest rates, rising labor costs, and extended payment terms. As pipelines grow, the tension between managing working capital and mobilizing projects has intensified, leading to increased insolvencies. With the political landscape adding further uncertainty, it's crucial for future government policies to focus on de-risking the supply chain, reducing payment terms, and providing clarity on infrastructure planning. This would enable construction businesses to make more informed long-term decisions. Stay informed and prepared as we navigate these challenging times. 🏗️🔍 #ConstructionIndustry #InsolvencyCrisis #EconomicTrends #ContractGroup

Are Your Construction Projects Late Again? "By failing to prepare, you are preparing to fail." - Benjamin Franklin In 2023, the Canadian construction industry met with the perfect storm: rocketing interest rates, skyrocketing material costs, labour shortages, supply chain blips, and the looming post-COVID recession. Construction delays became the new normal. But here's the kicker: managing these delays and cancellations isn't just about damage control. It's a legal minefield. Here's why: - Extra costs pile up: office overheads, equipment rentals, idle labour, financing, insurance, you name it. - Loss of revenue and profit looms large. - The legal framework sits like a ticking time bomb. Navigating this turbulence means knowing your contracts inside out, especially when it comes to project delays and cancellations. Here's how to do just that: 1. Know your contract: Review the change management and dispute resolution provisions. Understand every bit of it. 2. Pay attention: Don't overlook contractual notice provisions. These include timelines, requirements, and how the notice should be served. 3. Be compliant: Courts demand strict compliance, especially with government entities. In Tower Restoration v Attorney General of Canada, the contractor lost the case. Why? They didn’t deliver a dispute notice within the contract's timeframe. Don't let this be you. Understand the legal side of delays and cancellations. Protect your projects. Protect your profit. Does your company have a plan to handle legal issues related to delays and cancellations? #projectmanagement #constructionmanagement #realestatedevelopment

Article in today's The Australian Financial Review by Michael Bleby about Alison Mirams quick fix for construction industry "The construction industry would suffer fewer insolvencies – saving it and the wider community many millions of dollars – if a builder’s liability was capped at a multiple of their profit margin". "Rather than carrying half – or even all – liability for a commercial contract, as they typically do under fixed-price contracts that leave builders vulnerable to sharply rising costs, limiting their losses and passing on more of it to developers would keep more builders in business". ‘‘The way contracts are written at the moment [liability] is 50 per cent of a contract sum. Sometimes it is at 100 per cent of a contract sum and sometimes is uncapped. When it starts going south, you’re billed forever. You’re handing the keys to liquidate the company if it’s really bad.’’ By contrast developers, which typically took a 20 per cent profit margin, should bear more of the risks of a project, Ms Mirams said. ‘‘If the industry would just change that, it would save a lot of companies.’’ What do you think? Who has the rough end of the stick in this relationship? Ultimately, we do not want either builders or developers going down as they are both critical to the overall development of our communities. #builders #propertydevelopers #liability

In March, contractors reported rising backlog and likely growth in sales, employment and profit margins - according to the Associated Builders and Contractors. Get the details at https://ow.ly/JYAV50Ri6mu #BuildSteel #CFSteel #Construction #Money #Finance #Business #ConstructionIndustry