Broken Buildings, Busted Budgets: How to Fix America’s Trillion-Dollar Construction Industry

January 22, 2020

The $1 Trillion construction industry faces challenges, according to Barry LePatner, a construction attorney, adviser, and the author of Broken Buildings, Busted Budgets: How to Fix America’s Trillion-Dollar Construction Industry.

 

 

Barry LePatner says:

 

  • 98% of all large construction projects come in at least 30% over budget and at least 6 months late, according to a recent McKinsey & Co. report

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  • Investors, taxpayers and consumers pay for these chronic overruns (schools, hospitals, infrastructure, more)

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  • Construction industry faces massive skilled worker shortage

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  • Average project budget is $10M - $100M, only most owners…

    1. Are not experienced enough to realize how quickly their own money is being wasted

    2. Do not have the proper team to help them solve existing construction problems or avoid new ones

    3. Fail to utilize critical technology

    4. Needlessly assume all financing risk, putting themselves at the mercy of engineers, architects and contractors

  • Structural inefficiency impairs US competitiveness

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  • Among ways for owners to fix:

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  • Take back control of their own projects

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  • Contractually assign appropriate financial risk to engineers, architects and contractors

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  • Incentivize cost control

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  • Adhere to fixed-price contracts

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  • Transparent pricing

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  • Create true competition

 

 

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