Construction Today - December 2017 - 14

BEST PRACTICES
contractors have turned
ยป Top
regularly experienced risks into
competitive advantages.

STAY PROTECTED
R
Risk can work for and against you. BY HEIDI POZZO

isk. Just hearing it can send
chills down your spine. After all,
most people see it as a downside.
But risk can be a competitive
advantage. When you understand what can
go wrong in your business, you also will
find what you do well. That knowledge will
allow you to minimize the impact of downside risks. By finding a point of distinction
in managing risk better than your competitors, you have a decisive advantage.
If you haven't already done so, look at
projects that went well and those that didn't
over the last decade. A decade will give
you a good sense of what happens during
cycles. You may find that when the market

14

CONSTRUCTION-TODAY.COM DECEMBER 2017

is up, you take on different risks than when
the market is down. This process cannot
be bogged down by politics. It is not about
assigning blame to any one person or area
of the business. It is to learn and either
replicate success or avoid mistakes.
I've reviewed hundreds of projects and
found that many of the risks repeat from
project to project either positively or negatively. The following are top risks:
* Losing your history - In many companies, people move up, move to other
companies, retire, etc. In construction,
the cycles can be extreme. Many companies take action to reduce the impact
of cycles and address risk in the busi-

ness. Unfortunately, as management
changes, those lessons are lost and
history repeats itself. It is important to
build those lessons into the culture and
processes of your company so people
not only know what they need to do,
but why.
* Cash - Understanding how to structure
payments so you are always ahead has
a significant impact on the overall profitability of your company. Companies
that do this well have significantly lower needs for debt and also have learned
to weather industry cycles better than
competitors. Many bankers won't do
business with companies in the indus-


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Table of Contents for the Digital Edition of Construction Today - December 2017

Contents
Construction Today - December 2017 - Cover1
Construction Today - December 2017 - Cover2
Construction Today - December 2017 - 1
Construction Today - December 2017 - Contents
Construction Today - December 2017 - 3
Construction Today - December 2017 - 4
Construction Today - December 2017 - 5
Construction Today - December 2017 - 6
Construction Today - December 2017 - 7
Construction Today - December 2017 - 8
Construction Today - December 2017 - 9
Construction Today - December 2017 - 10
Construction Today - December 2017 - 11
Construction Today - December 2017 - 12
Construction Today - December 2017 - 13
Construction Today - December 2017 - 14
Construction Today - December 2017 - 15
Construction Today - December 2017 - 16
Construction Today - December 2017 - 17
Construction Today - December 2017 - 18
Construction Today - December 2017 - 19
Construction Today - December 2017 - 20
Construction Today - December 2017 - 21
Construction Today - December 2017 - 22
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Construction Today - December 2017 - 24
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Construction Today - December 2017 - 28
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Construction Today - December 2017 - 31
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Construction Today - December 2017 - 40
Construction Today - December 2017 - 41
Construction Today - December 2017 - 42
Construction Today - December 2017 - 43
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Construction Today - December 2017 - 45
Construction Today - December 2017 - 46
Construction Today - December 2017 - 47
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Construction Today - December 2017 - 49
Construction Today - December 2017 - 50
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Construction Today - December 2017 - 53
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Construction Today - December 2017 - 55
Construction Today - December 2017 - 56
Construction Today - December 2017 - 57
Construction Today - December 2017 - 58
Construction Today - December 2017 - 59
Construction Today - December 2017 - 60
Construction Today - December 2017 - 61
Construction Today - December 2017 - 62
Construction Today - December 2017 - 63
Construction Today - December 2017 - 64
Construction Today - December 2017 - 65
Construction Today - December 2017 - 66
Construction Today - December 2017 - 67
Construction Today - December 2017 - 68
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Construction Today - December 2017 - 70
Construction Today - December 2017 - 71
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Construction Today - December 2017 - 88
Construction Today - December 2017 - 89
Construction Today - December 2017 - 90
Construction Today - December 2017 - 91
Construction Today - December 2017 - 92
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Construction Today - December 2017 - Cover3
Construction Today - December 2017 - Cover4
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http://digital.construction-today.com/nxtbooks/phoenix/ct_20111011
http://digital.construction-today.com/nxtbooks/phoenix/ct_201109
http://digital.construction-today.com/nxtbooks/phoenix/ct_201108
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201107
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201106
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201105
http://digital.construction-today.com/nxtbooks/businessmedia/ct_201104
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http://digital.construction-today.com/nxtbooks/businessmedia/ct_201012
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http://digital.construction-today.com/nxtbooks/businessmedia/ct_201010
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http://digital.construction-today.com/nxtbooks/schofield/ct_200912
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http://digital.construction-today.com/nxtbooks/schofield/ct_200910
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