The following article written by Roelof van den Berg, CEO of the Gap Infrastructure Corporation (GIC), looks at contractor’s capabilities, ethics, and experience – factors paramount in the successful execution of any cold chain project. This is part one of a two-part series.
- Insufficient insurance or permitting in past projects
However, they in fact serve as a bedrock of responsible contracting, and a key measure to ensure contractors can mitigate risk efficiently and better deliver project outcomes. This is especially important for large-scale projects with multiple compliance obligations.
Moreover, without adequate liability coverage, public and private project owners could be left shouldering the risks of on-site accidents, environmental damage, or structural failures down the line. Reputable contractors understand that thorough insurance and regulatory diligence is part and parcel of high-stakes infrastructure development.
- ‘We do everything’ contractors
Large-scale projects are complex, with many moving parts and specialist requirements. While large firms such as GIC have the capacity to employ specialists from every field, we too sometimes rely on the particular expertise and general assistance from subcontractors. As for smaller contractors, they may not have the staff complement to ‘do everything’.
If a contractor claims universal expertise – electrical, plumbing, engineering, architectural design, project management, and more – it’s wise to press for evidence. Also be vigilant that a contractor does not outsource critical project components to lower-tier subcontractors that may not be up to the task, resulting in cascading inefficiencies.
- Executive inexperience
Companies looking to grow quickly and secure their share of an infrastructure boom may promote technically-gifted engineers or architects with no practical leadership knowledge or management-level administrative experience to executive positions.
Newly-formed entities, in particular, led by professionals who excel in small-scale works but have never managed complex, big-budget initiatives, may run into issues. Common risks include underestimating administrative obligations that could result in delayed progress payments or other penalties; difficulty balancing multiple concurrent projects, leading to resource shortages and prioritisation conflicts; and an absence of reasonable risk mitigation strategies.
These five considerations are not to dismiss smaller and emerging firms – the construction sector will always benefit from fresh perspectives and healthy competition that trigger higher industry standards. But clients should nonetheless be careful which contractors they entrust with their projects. The need for competent, forward-thinking contractors has never been greater, and it’s up to construction firms to ensure they meet these criteria and the highest industry standards as much as it’s up to clients to demand service excellence.