Initiating the Turnaround Cleaning the Slate As we theorized at the outset of this series, projects seem to go astray when …

During realignment, it becomes necessary to reestablish a new baseline by “cleaning house” and reinstituting the procedures to which the parties agreed.

As far back as 1994, Construction Industry Institute’s (CII) 1994 publication entitled, Project Change Management, concluded that “the first principle of effective change management is to promote a balanced change culture&hellip The allocation of costs and benefits should be made equitably and consistent with the base agreements in place.”

A project usually starts with a honeymoon period between the contractor and CM team. How long that honeymoon lasts typically depends on whether or not the parties are realizing their financial projections for the project. Once the contractor begins to see profits drop, he often looks at the CM as the reason.

The predominant mistake in the approach of many CMs managers is avoidance, which is exemplified by a reluctance to enforce protocols dictated by the general conditions, and an aversion to document the contractor’s failures to comply with contract requirements. We have found that not only does this style of management impede the owner’s ability to defend claims, but we have also discovered that projects managed under these flawed approaches are more prone to quality problems, schedule delays, and distrust and acrimony among team members.

In a troubled project, each party prepares its own list of grievances and perceived cost impacts without sharing it. Each holds the expectation that it is entitled to credit/reimbursement. This festers into resentment, lack of cooperation, and even animosity. How does an owner build back the trust between the players and convince the contractor to come to the table to continue seeking solutions to the project’s troubles?

In this eight-part series, we will outline turn-around strategies for high-risk construction projects. Not only are such basic tenants and protocols of Anser’s Risk Mitigation Management practice recommended for troubled projects, but we also regularly incorporate many of these principles into our sales and delivery of our assignments as a third-party, construction manager (CM).