No architecture or engineering firm likes to turn down work, but sometimes taking on a project is simply not worth the effort. Here are five reasons to turn down a project:
1. Too Small. Every firm has its fee floor for profitability. Below this limit, the firm, by its nature, cannot produce profits, as it will automatically invest too many resources. Turn these projects over to smaller organizations which will not compete with you on larger projects from that client.
2. Too Large. Any project which represents a significant portion of a firm’s annual gross is too risky for the firm. If that project is a failure, will the whole firm risk failing? Instead, consider participating in a joint venture.
3. Wrong Client. Do not accept work from a client who is wrong for you. Reasons include: financial instability, litigiousness, unreasonable expectations, or even conflict of personality.
4. Professional Liability Risk. Certain types of projects are high risk. Asbestos connected, hazardous waste, rehab and condominium projects may all carry high liability potential. Evaluate your risk before accepting such work.
5. Expertise. Do not accept work which calls for expertise which you do not have. You may be unable to meet the client’s expectations or will probably subject yourself to unexpected costs.
Architecture, engineering, and construction firms have plenty of ways to spend money, but only one way to make it...through projects. Your Project Managers are the gatekeepers to the firm's profits and long-term health. A wise investment in project management is absolutely a wise investment in improved profits, improved client satisfaction, and improved value. Unlike a generic project management training seminar, PSMJ's AEC Project Management Bootcamp is focused on real-world A/E/C project management, and is delivered by proven A/E/C project management experts.
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