Contract Surety

Not So Fast?

09.13.2024

 

Given the drive to modernize infrastructure across the country, and the influx of local, state and federal funds for public works, many builders across the country are confronting a push for acceleration. Engineers remind us to be careful and stick to prioritizing a culture of safety on every job. 

 

Risky Business

Survey findings from the National Council of Structural Engineers Associations (NCESA) is putting the spotlight on concerns about both the speed of construction projects and deferral of critical repair work. Pressure to accelerate is, as Chris Cerino, president of the NCSEA reminds us, a safety hazard: 

The push to shorten project timelines can lead to compounding errors during construction, and existing infrastructure is not getting the maintenance and repairs it needs, Cerino said. Speed is a problem from two fronts, according to Cerino. When owners shorten a project schedule, the architect may not be finished by the start of construction. Engineers are told that the designs will be looked at sometime down the road, but an opportunity for review doesn’t always happen….On the construction side, contractors often struggle to find enough workers, especially if there’s a building boom in the region. As a result, they may try to get work done quickly while they still have labor available.“Even when something is wrong, sometimes they are forced to push forward because of economic reasons, and they’re willing to take the penalties,” Cerino said.  

It’s wise for construction company owners to keep in mind that the best antidote to being pushed to accelerate a project past what is viable, is a steady focus on creating and maintaining a strong culture of safety. Leaders at the National Council of Structural Engineers Associations point out:

If a company has made safety a core value and won’t accept a less-safe alternative, “they will then push harder to negotiate from a position of strength and confidence in the product of their company and their abilities to get the right amount of time,” Cerino said. This focus on safety can also prevent issues from snowballing.” If you’re negotiating from a position of weakness because of whatever reason — you underbid, you’re not totally qualified — errors become compounding errors and start to multiply. It’s rarely one bad decision that causes a construction site problem….” A progressive design-build delivery method — in which the team works with the owner on developing through the design phase the best possible project and then signs a guaranteed maximum price contract — can enable a reasonable schedule.

Pressure to accelerate can be especially intense these days, given that deferring  infrastructure work brings risks of its own. Because of long neglected infrastructure imperatives across the country, even with the robust commitment made with the IIJA, and its resulting butterfly effect on additional public and private commitments across the country, experts remind us we are still treading water just to keep up with emerging challenges. According to analysis by the ASCE, the infrastructure category most in need of increased investment is surface transportation, and the consequences of failure are steep: “Continuing to defer maintenance and modernization is impacting our ability to compete in a global marketplace and maintain a high quality of living domestically.” Other infrastructure categories that require ambitious attention and investment include energy, water (drinking, waste and stormwater), water transportation and aviation. 

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Founded in 1930, Colonial Surety Company is a leading direct seller and writer of surety bonds and insurance products across the USA. Colonial is rated “A Excellent” by A.M. Best Company and U.S. Treasury listed. Let’s connect today: Colonial Surety.