There’s no doubt that good risk management is imperative to construction projects. In worst-case scenarios, unmitigated risks lead to cost overruns or delays, and eventually disputes, liquidated damages, even litigation.
We’ve found that the best way to mitigate cost risk is to address all considerations at the beginning of a project. Our team of architects, contractors and financial analysts works together to identify potential risks and make detailed project models. These models allow us to create additional contingencies, insurances or contractual clauses to protect our clients’ investments.
Next, during the construction phase, we perform comparisons to the initial budget at key milestones to ensure the project stays within the anticipated parameters. Also, because we have our own in-house building professionals, we’re able to respond to contractor RFIs in a very short time, dramatically reducing the risk of time overruns and providing significant cost savings.
Primior is a developer based in Diamond Bar, California.