Precon Value in Project Delivery Methods

By leveraging preconstruction services contractors can gain a significant competitive advantage.

D. Brown Management Profile Picture
Share

Preconstruction services are far more than simply estimating the project at various stages of design development and construction document.   

This chart ranks the impact of precon across the basic project delivery methods and four basic dimensions:  

CM at Risk: Summary of Precon Use for Project Delivery Methods.
  1. Does it provide a differentiating factor against your competition up front?

  2. How advanced will your preconstruction services have to be and to what depth will they be used on the project?

  3. How much will preconstruction capabilities and execution impact the profitability for the contractor?
     
  4. How big of a role will precon services play in project owner satisfaction? 

All four of these dimensions will ultimately show up on your contractor scoreboard and should be heavily considered when you are determining your market strategy.   


Preconstruction Services as a Growth Strategy
Dominate your competition by contracting for preconstruction services while projects are still concepts on scratch paper. This series of videos will look at the preconstruction process from the perspective of the Project Owner, Architect, and Contractor. ...

Preconstruction Services as a Growth Strategy
Dominate your competition by contracting for preconstruction services while projects are still concepts on scratch paper. This series of videos will look at the preconstruction process from the perspective of the Project Owner, Architect, and Contractor. ...

Three Questions About Growth
A construction business can not be managed like a project even though the primary work of a contractor is building projects. There are three questions that illustrate these differences.
Selling an Efficient Project
Doubling the pretax net margin for contractors requires both effective selling AND operational excellence. The majority of of people in construction contracting businesses are operationally focused on building the work.
Ownership Transition and Capital Basic Model
When a contractor goes through an ownership transition, the business itself is the proverbial goose laying the golden egg. Remember the basic math formula for ownership transitions and use this simple calculator as a starting point.