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Deadly Construction Sins

Real Estate New York, May 2000, p. 76, authored by John E. Osborn, Esq.

Corporate owners and tenants who build in urban centers such as New York City are an "at risk" group. Getting everything on line quickly is expensive, and difficulties encountered during a failure in design or construction can be catastrophic if practical solutions aren't promptly developed to get the process back on track.

On March 2, 2000, the Greater New York Construction User Council presented a seminar, " Turning Around the Construction Project Heading South," featuring remarks by Bruce Bloch, director, corporate real estate services, Deutsche Bank/ Bankers Trust; William Whistler, partner and director of design for Brennan Beer Gorman/ Monk/ Interiors; James Marino manager, PricewaterhouseCoopers; and myself.

The program focused on upfront planning and due diligence, and creation of architectural and legal strategies to solve problems promptly and effectively. We agreed that often, in the case of construction or renovation, counsel is called in after the project is already off track. Construction projects that have gone off track have common symptoms. If detected and addressed early, disaster can be averted.

Without fail, one or more of the "Ten Deadly Construction Sins" caused the problem. It is just a matter of finding out early in the process which issues are involved so they can be resolved and a claim avoided. Better yet, read the following list before your next project. Be assured that if each and every "sin" is avoided, you will have a better project and will be able to resolve all disputes--incrementally and without a lot of pain and expense--during the project.

What are the 10 most deadly construction sins?

  1. Lack of focus upfront. Even before the architect is chosen, it is essential that the needs, budget and "vision" for the project be captured in written documents. Too often, the owner charges ahead without a clear road map. The failure to really focus upfront will leave a series of ticking time bombs in its wake.
  2. Failure to choose the best method of project delivery. Specific methods of project delivery have gained wide acclaim. Construction management was once the method of choice. Design/ Build has been used extensively in recent years, sometimes when other methods may have been more appropriate. Choosing the right method requires an early and clear vision of core goals reflecting the input of the entire project team.
  3. Failure to assemble the right project team. Alignment of skills, experience levels and personalities is essential. Partnering at the earliest stages has been used to make sure that the team fits together.
  4. Failure to coordinate the project team. Neither inadequate nor excessive levels of communication are acceptable. Effective communication is essential to avoid defective work from being installed and to prevent claims from other misadventures.
  5. Failure to provide a method of changing the scope. It's hard to believe, but basic ground rules are often neglected. As practical experience shows, the most hotly contested issues in construction contract litigation relate to determining scope and price.
  6. Failure to understand local conditions. Unions, work hours, and material availability differ widely with each locality.
  7. No accurate schedule, or too elaborate a schedule, or lack of accurate updates. Schedules that can be easily read and updated are essential. Elaborate schedules are often misunderstood and too cumbersome to update.
  8. No periodic meetings or failure to keep meeting minutes. Fixing a time for the weekly meeting is an important requisite for every project. Meeting minutes are blinding on the parties and usable in court.
  9. No vision on dispute resolution. Dispute resolution needs focus. Successful use of mediation to solve construction disputes is documented.
  10. Failure to recognize that quality wins the day. The focus on quality can be lost when the spotlight is on value engineering and on price.
The owner's continuous focus leads to success in project delivery. The owner must thoroughly know the project, choose the right advisers, prepare the right contracts, set the right ground rules for dispute resolution, pick the right team, and establish open and candid communications. Sticking to basics in planning and administering a project is the best way to prevent claims.