Risk Management

One of the most important concepts in construction management is that of risk management.  What does this mean?  Simply put it means that an important part of your job is to make sure that the right amount of risk is placed on the right party.  The more risk you put on the contractor, the more likely the price of the work is going to go up.  A good contractor will make sure that any risk inherent in the project is reflected in the bid price.  And this is to be expected.

There is an important trade off between the dollars you spend on engineering and the dollars spent on construction.  You can easily spend your entire budget on engineering and survey work to make sure there are no unknowns.  But then you won't get anything built.  And that's kind of the point of construction management, to get things built.

This will definitely be a topic that I write on more, so stay tuned...