Don't Just Survive - Get Ready to Thrive!

The highway construction sector is changing, which means that contractors must change as well. This article discusses some of these changes, which are resulting in a wider variety of delivery methods and changes in the qualifications of who can compete. There is a growing trend towards fewer but larger projects, some of which result from the bundling of several smaller projects to award as a single contract. In addition, the Internet revolution has given owners access to a wealth of information, which is fueling a growing pressure to consider construction as a commodity purchased on the open market for the lowest bid. The use of construction managers in the design phase and owner project managers to oversee the entire project is also growing. Just like contractors, owners have reduced the number of staff members, which means that they expect greater support from construction service providers at the lowest price possible. This often means changing construction delivery methods. The options have increased considerably over the last two decades to include design-bid-build, design-build, construction manager, construction manager-at-risk with a guaranteed maximum price, and integrated project delivery. Although many owners are looking to minimize cost, savvy owners that are concerned about poor quality and missed schedules are using a pre-qualified bidder process to ensure the best value. All of these trends will present challenges to contractors, especially smaller contractors with resource constraints. The successful contractor must thus evolve their business to meet the changing needs of project owners.