Twenty builders on where D&C risk is heading

Last week we hosted a private dinner for twenty builders who, between them, put through more than $8 billion of work a year. The topic was the future of design & construct risk — where it sits now, and where the people carrying it think it is heading.

Three things came up often enough to be worth reporting.

1. Builders are getting choosier about their clients

The question has moved from whether a job can be won to whether a client is worth building for. Reputation, payment history and how a client behaves when a job goes sideways are being applied as filters before anyone prices the tender.

2. ECI is becoming the default

Early contractor involvement came up all night. Builders want to be in the room while the design is still moving, because that is the point at which their input still changes the number.

3. Legal spend on contracts has become a line item

Several described spending hundreds of thousands of dollars with lawyers to negotiate heavily amended contracts back toward something close to standard.

The through-line

They can't price what they can't see, so the industry's answer is to show up earlier and hope it's early enough.

Thanks to Kevin Le and David Chandler OAM for hosting the night, and to everyone who came and spoke openly.

We would like to run more of these. If you would like a seat at the next one, get in touch.