Friday, September 21, 2007

Busted Budgets:

Tyler Cowen at The Marginal Revolution Blog comments on the factors inherent in every construction project

“That's by Barry B. LePatner and the subtitle is How to Fix America's Trillion-Dollar Construction Industry.

“The key problem is that building or new construction owners become completely dependent on information provided by their contractors. The contractors experience cost overruns and the commissioning owners have to suffer delays, cost increases, and the general feeling of having been screwed over. Opportunism and recontracting are rampant.”

Restaurateurs are only involved in construction during the build out phase. Most do not want to be involved at all and outsource the entire phase. Running a restaurant is easy, building is the hard part. Costs escalate rapidly and you are left with an unfinished space and Busted Budgets!