Hai All. This week I am making internal audit for a firm under provision of "Construction Management Services in civil, Building & Infrastructure works". Great..The Quality Management System (QMS) Manual was nicely in place and fullfill all the ISO 9001:2008 requirements. Procedure and processes to achieve their goal all had been properly documented and followed. The question here is how do they can loose so much in a project !!!!!!. It cause millions.
It is no body fault. That is construction. After a light conversation with the owner, I realise Who is the culprit behind all the event that make them lost so much. Here is it.
Project planning( Click this to purchase at Amazon) had failed.
The project had been awarded, However they could not start the construction due to le land accusation problem.
Time.
The above issue was only resolve almost a year after the contract awarded. Cost increase.
Project Pricing.
Pricing was done and accepted however there is no clause allow for price fluctuation variation order. From tendering until start work, it take almost two years!!! market price for almost all construction material had increase and the worst part is it goes up above their pricing. It is not contractor fault. They had include such situation in their budget but they still get beaten.
Service provider.
Their main service provider had pull out from that project to avoid the losses. They pull out without making any profit. They make such a loss in form of had not been able to captured other opportunity to make money from other project. They don't dare to take the opportunity due to the reason that the project they had committed to is a mega project to them. Hence they can't wait any longer and decide to give up the project.
The firm decision.
To continue with the project no matter what it takes. They cannot pull out because of legal implication on them. They will be blacklisted!!!!!....They had to proceed with a lost.
Minimising the Lost.(Click this link to purchase)
Actively look for ways to minimise losses. Negotiating Skills required...!!!!!
Moral of the story.
1. Step back If you are not prepared to continue.
2. planning is a way to maximize your profit and ability.( Click here to buy).
Related Article in this blog :
Top Secret of successful construction project.
Project planning guide
Tendering Guide
Quality Documentation filing
Tendering : Evaluate your financial capacity
Construction tender bidding procedure and processes
Big money in Construction Industry
Making Money in Construction
How to reduce the construction cost
Winning a tender
Important of project Planning
How to bid and win any tender
Construction Management
It is no body fault. That is construction. After a light conversation with the owner, I realise Who is the culprit behind all the event that make them lost so much. Here is it.
 |
| CLICK PICTURE TO PURCHASE |
Project planning( Click this to purchase at Amazon) had failed.
The project had been awarded, However they could not start the construction due to le land accusation problem.
Time.
The above issue was only resolve almost a year after the contract awarded. Cost increase.
Project Pricing.
Pricing was done and accepted however there is no clause allow for price fluctuation variation order. From tendering until start work, it take almost two years!!! market price for almost all construction material had increase and the worst part is it goes up above their pricing. It is not contractor fault. They had include such situation in their budget but they still get beaten.
Service provider.
Their main service provider had pull out from that project to avoid the losses. They pull out without making any profit. They make such a loss in form of had not been able to captured other opportunity to make money from other project. They don't dare to take the opportunity due to the reason that the project they had committed to is a mega project to them. Hence they can't wait any longer and decide to give up the project.
The firm decision.
To continue with the project no matter what it takes. They cannot pull out because of legal implication on them. They will be blacklisted!!!!!....They had to proceed with a lost.
Minimising the Lost.(Click this link to purchase)
Actively look for ways to minimise losses. Negotiating Skills required...!!!!!
Moral of the story.
1. Step back If you are not prepared to continue.
2. planning is a way to maximize your profit and ability.( Click here to buy).
 |
| CLICK AND BUY HERE |
Related Article in this blog :
Top Secret of successful construction project.
Project planning guide
Tendering Guide
Quality Documentation filing
Tendering : Evaluate your financial capacity
Construction tender bidding procedure and processes
Big money in Construction Industry
Making Money in Construction
How to reduce the construction cost
Winning a tender
Important of project Planning
How to bid and win any tender
Construction Management
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