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Death knell for partnering as clients seek to cut costs


When “Clients” look to cut costs they need to appreciate that “Cost” is made up of a number of core elements, thus any strategy to reduce costs needs to be multi headed, to avoid the traditional “Claims” kickback. Overhead, profit, design, construction resources, and risk, combine to make up cost and all should all be dealt with differently given their different drivers. Effective cost reduction does not mean “cut margin” alone, but the tackling each of the constituent elements of cost in a systematic and managed way, which is best achieved in a “Partnering” environment.

Posted date

3 August, 2009

Posted time

2:24 pm