McKinsey has a report they published in Feb 2017 on reinventing construction. CNBC has a youtube video on the power of McKinsey.
McKinsey points out the challenge.
“For their part, contractors and specialized trades may stand to lose from a move to a more efficient system in which many of them win orders by optimizing up-front pricing and then making up for lost surplus via change orders and claims, or where nonstandard or costly specifications can mean higher revenue rather than lower margins. Currently, many contractors are more focused on maintaining those margins than measuring and improving productivity. ”
There are 7 areas for the solution. But are these the way to change construction or are these changes that will be observed as construction changes.
Being more efficient, saving money is not an incentive to change that is powerful enough.
So what is the incentives for getting construction to change? Most know they are stuck and not making progress they should.
