Managing Construction 1

Question 1

Construction is a VARIABLE COST BUSINESS, because:

Answer 1

small firms do not need to have CRITICAL MASS to be profitable

Question 2

Construction is one of the few businesses where the big does not eat the small,

Answer 2

the fast eat the slow.

Question 3

Consistently finish quantity takeoff and unit pricing before:

Answer 3

BID DAY. This lets you focus on the business of bidding the project, NOT THE TECHNICAL DETAILS

Question 4

Construction contracting consists of two components:

Answer 4

People and Processes

Question 5

As a rule of thumb, you should be turning over your working capital

Answer 5

eight to twelve times a year. If you have 1 million of working capital, your revenue should be in the range of 8 to 12 million. THAT IS THE SPEED OF PROCESS.

Question 6

These items, if not answered promptly, might be grounds for contractors to stop work:

Answer 6

a. Monthly draw requests
b. Change Order written acknowledgement
c. RFI answers
d. Submittals
e. Product info on owner furnished material
f. Color selections
g. Signed and executed contracts