6B — June 28 - July 11, 2013 — Owners, Developers & Managers — Mid Atlantic Real Estate Journal
www.marejournal.com
C ONTRACTORS /S UBCONTRACTORS
By Keith A. Brubacher, Brubacher Excavating, Inc. How the change order mentality creates adversaries instead of cooperation
T
he crowd of CEOs erupt- ed into spontaneous laughter at the construc-
owner, this experience caused me to reflect on our industry and its typical behavior. A com- mon industry practice is bid- ding work at negative margins with the full intent of making up profit in subsequent change orders. The contractor then sets the stage for change orders by creating or exploiting gaps in the scope of work. I often won- der why this is accepted when the outcome is so different than planned. Various construction deliv- ery methods exist within the industry– spanning the range
from hard bid to design-build and integrated project delivery. I believe clients receive the best value with the least un- anticipated cost changes when collaboration starts early. The best time to reduce construction and life-cycle costs, schedules and critical path delays is while design and build sequences are being established. A big factor in achieving cost and schedule improvements on challenging site projects is the early adoption of a cooperative mentality – rather than an adversarial one. Adversaries
are just that – opponents. This mentality encourages each party involved to withhold in- formation – details that could benefit the overall project goals. In this scenario, contractors withhold information because they think the value of their expertise will be shared with competitors. Clients shy away from openly sharing details because they don’t want to be perceived as favoring one con- tractor. The truth is that incom- plete information drives up the cost and risk of projects. Conversely, a cooperative approach encourages the free
flow of ideas, information and risk management strategies that benefit the outcome of the whole project. Discussions with the client to review the proposed scope and underlying assumptions at the bid stage are critical in reducing risk, stress and potential conflict. Investing time at this stage minimizes the opportunity for costly surprises that could threaten the financial viability for the project owner. Early and open dialogue as trusted business partners reduces risk and cost while im- proving quality and schedule. A change-order mentality cannot accomplish these outcomes. Keith Brubacher is presi- dent and co-owner of Bru- bacher Excavating, Inc., a site contractor serving develop- ers, owners, general contrac- tors and municipalities. ■ SOMERVILLE, NJ —DS&D announced the appointment of Manie Fahey as VP of Solutions Studio. Fahey will be leading the development of partner- ships across vertical markets specifically related to establish- ing the organization as a value- add resource in the interiors environment. Through this consultative role, Fahey will introduce a diverse product and service portfolio to both new and existing customers. “Manie brings a wealth of experience in sales and busi- ness development, with an im- pressive background working within the design community,” said DS&D President and CEO Steve Lang. “We are committed to solidifying our position as a trustworthy, comprehensive resource to our architects and design firms throughout the in- dustry. With Manie’s expertise, we can further diversify our service and product portfolio throughout the marketplace and enhance the ways in which we deliver added value to our partners and our clients.” With 18 years of experience in selling commercial interior finishes, Fahey has excelled throughout her diverse career by nurturing relationships in the architectural and design community while leveraging her consultative style and cre- ative expertise. ■ Manie Fahey joins DS&D as VP of Solutions Studio
tion firm own- er who had just admitted what most of them already knew and had experienced. “I love change o rde r s , ” he stated with a
Keith Brubacher
slight chuckle in response to a question from the conference speaker. Being a construction business
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