This content was published prior to the merger of equals between BKD and DHG on June 1, 2022. See all FORsights for the most up-to-date articles, webinars, and videos.
Top Takeaways from the CAGC 2022 Annual Convention Panel Discussion
DHG hosted a panel discussion during the Carolinas AGC (Associated General Contractors) Annual Convention in Charleston, SC in January 2022. In response to challenges currently facing the construction industry, DHG's Mark DeVerges, Aprille Bell, and Mike Trammell, along with New South Construction Supply's Barrett Cooke and Bradley's Ryan Beaver, presented "Controlling Cost Creep Amid Construction Industry Challenges."
If you missed the event or just want a refresh, below are some of the key takeaways from the panel's presentation.
Contract Provisions: Price escalation clauses help manage the contractor's risk throughout contract performance. These are becoming more common and can provide comfort to contractors during periods of rising material costs.
Just-In-Time Management: The increase in product demand coupled with the decrease in production capacity has resulted in material shortages and higher costs across the board, making just-in-time management challenging. To prepare for future projects, plan ahead when possible and consider pre-buying materials and supplies at lower prices.
Attracting and Retaining Talent: Hiring and retaining talent have become increasingly difficult. Company culture has become critically important as employees' priorities pivot to include flexibility, engagement with co-workers and access to new technology. Contractors must be aware of market trends and should be prepared to offer competitive market compensation packages, along with desirable working conditions.
Accurate Financial Information: Estimates drive financial results for a construction company and good estimates support good decisions. During periods of material price escalations and labor challenges, it is critically important that projects be closely managed and costs to complete regularly updated to reflect reality. To minimize surprises, improve performance going forward and provide accurate financial information to stakeholders, profit margins on projects in process should reflect reality.
Lean On Your Trusted Advisors: When in doubt, your trusted advisors are there to help guide you and your business.
If these or other issues are impacting your organization, DHG is happy to answer your questions and put the people and resources of a leading professional services firm to work for you.
