By Martin Loosemore
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For example, it may limit the amount of funds lent out or impose substantial collaterals. It may even insist on a low-risk construction and procurement strategy in the form of the traditional method of delivery based on full design and documentation, and competitive tendering. A financier may also insist on becoming a project team member to have a more direct access to project information and possibly to influence decision-making in order to safeguard its investment. A better approach would be to invite a financier to become a project team member and involve it in both strategic and short-term decision-making.
It is the quality of work associated with these pre-construction stages that often determines how successful or otherwise project outcomes are. Bromilow (1970, 1971) and Levido and colleagues (1981) showed that the greatest opportunity for significant cost efficiencies is at the conceptual and design stages of a project lifecycle. Conversely, they found that faults in the design and documentation which only become apparent at the construction stage could substantially increase the cost and time of projects.
Customer departmentalisation With the growth of partnering in the construction industry, some construction companies are establishing divisions that are dedicated to particular customers. This is only feasible with customers who build regularly and can supply enough work to keep a department viable and busy. Such clients may include supermarket chains, fastfood chains like McDonalds, or banks. The advantage of this arrangement for the customer is a custom-made, dedicated service 53 Organisation Structure which can routinely supply standard-made buildings in unusually fast times and with low costs.