Can You Deliver a Construction Project on Time?

Your small contracting company won a fixed-price contract: a two-story villa for $1,560,000, handed over in 32 weeks. Every fortnight late costs $30,000 in penalties. The client pays only when an inspector certifies a milestone, and usually late, holding back 10% until the end. You planned a profit of under 10%. Pick your crew, your subcontractors and how you buy steel; then deal with rock, change orders, accidents, heat and a client who pays slowly. Run out of cash and you can’t pay the crews.

• 24 weeksfour decision pages, settled a fortnight at a time
• +12 weeksoptional, through to handover
• Fixed priceevery delay and overrun comes out of your profit